The cryptocurrency market has been rebounding in recent weeks amid the widespread crisis in the banking sector, and its rebound has been led by Bitcoin (BTC), which is looking forward to a halving in just over a year and a half and a potential price hike that could come with it .
In fact, Bitcoin is estimated to undergo another halving in the first half of 2024, specifically sometime in late April or early May when BTC is expected to hit 840,000 blocks, at which point the reward for mining new Bitcoin blocks currently stands at 6.25 BTC for each mined block is halved.
This process was put in place to control the supply of the first DeFi (DeFi) asset as only 21 million BTC can be in circulation at any given time, making it deflationary as opposed to inflationary currencies such as fiat money which are on the rise can be printed period set by governments.
Bitcoin Halving Cycle Pattern
Coincidentally, previous halving events, the most recent of which occurred in May 2020, occur roughly every four years and typically followed a surge in bitcoin price, leading many crypto traders and analysts to expect no less of future bitcoin prices. Halving.
In that sense, the pseudonymous crypto analyst the rational root has compared past bitcoin halving cycles and the flagship cryptocurrency’s price on a chart focused on its all-time highs (ATHs). When compared, some interesting similarities emerge, such as: B. the timing of peaking after a similar number of days.
Recently also the analyst divided a chart showing the progress of the current bitcoin halving cycle and BTC price versus historical trends, indicating that bitcoin is 72% in the current halving cycle since March 20th.
The chart is also useful for observing the timeline of previous BTC price spikes, suggesting that the next one could occur around a year after the date of the fourth halving cycle, bearing in mind that Bitcoin has had a habit of going around 10 to 12 months after each of the spikes to rise the halving events.
Bitcoin price change
Meanwhile, Bitcoin was changing hands at press time priced at $27,757, down slightly over the past 24 hours by 2.05% but still up 14.12% over the past seven days and 12.4% on its monthly chart shows as evidenced by the latest CoinMarketCap Data retrieved from Finbold on March 21st.
Considering the chart patterns surrounding past halving events, it is safe to assume that the fourth bitcoin halving in May 2024 will bring a significant price increase for the crypto industry representative and its largest asset by market cap.
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