As the United States Securities and Exchange Commission (SEC) is widely expected to give out approvals to the spot Bitcoin ETF approval, the date for Bitcoin Halving is approaching. The Halving event historically produced significantly higher returns to Bitcoin BTC Price following the event compared to the lead up to the event.
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BTC Price To Peak After Halving?
When looked at the BTC Price pattern around the previous Bitcoin Halving events, the period between the event in 2012 and 2016 saw a BTC price rise by a whopping 5187% whereas the four year period following the 2016 halving saw a nearly 3000% rise in the cryptocurrency’s price. Similarly, the top cryptocurrency reached its all time high level of $69,000 an year after the 2020 halving event. Hence, this shows that the event has shaped out to be a key driver for inflow of funds into crypto market and thereby price rallies for Bitcoin as well as altcoins.
The Bitcoin Halving event, held every four years, is aimed at reducing the maximum supply of BTC. Technically, the event marks the halving of block rewards to miners. Following the 2020 event, the reward was reduced from 1,250 units to 625 units. The upcoming event would see the halving of reward to 3,125 units.
Bitcoin To Avoid One More Dip?
According to analyst CrediBULL Crypto on X platform, the Bitcoin price is primed to gain the upside momentum if it breaches the $45,500 level in the lead up to the spot Bitcoin ETF approval before the January 10, 2024 deadline. Else, another dip may be seen around the $38,000 to $40,000 zone, a post from the account said. Meanwhile, reports suggest that the Bitcoin ETF may be allowed for trading as soon as the next business day after the ETF approval.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
