Bitcoin is one year away from a major technical event, which could play a catalytic role in a prolonged rise of the cryptocurrency.
The reason for the “halving“, according to CNBC, with Bitcoin moving upwards recently, having gained 80% since the beginning of the year, and with history teaching that this is potentially the beginning of a new bull run.
Specifically, in April or May 2024, Bitcoin is expected to go through the next round of the “halving” process, according to Luno’s Vijay Ayyar, who puts a “jump” above $30,000 into this context.
This process used to take place every four years (or every time 210,000 new “blocks” are added to the blockchain) and is intended to reduce the number of new bitcoin released into the market.
Currently, Bitcoin miners receive 6.25 Bitcoin for each block, while with “halving” their reward is halved. Therefore, in the next “halving”, it will be reduced to 3.125 Bitcoin.
The cap on the number of Bitcoins in circulation is set at 21 million.
Before the last “halving”, on May 11, 2020, the price of Bitcoin strengthened by 19% in the 12 months prior (from $7,191.36 to $8,568.88).
Meanwhile, in the immediately preceding “halving”, on July 9, 2016, Bitcoin experienced a rally of 142%.
In its first “halving”, on November 28, 2012, it experienced a “jump” of 384%, from $2.55 to $12.35.
The price of Bitcoin tends to rise even more in the months following the halving.
In particular, after the “halving” of 2020, Bitcoin gained 688.31% in the 546 days that followed.
In 2016, after the “halving”, the cryptocurrency “soared” by 2.824% reaching a high of $19,065.71 in mid-December 2017.
It should be noted, however, that despite Bitcoin’s recent rise, the cryptocurrency is 50% lower than its historical highs of November 2021.
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