Bitcoin’s fourth halving event is set to occur at the end of April 2024, making it one of the most significant events in the cryptocurrency space. This event not only impacts the price of Bitcoin but also influences the direction of the entire cryptocurrency market.
So, what exactly is Bitcoin halving? Since Satoshi Nakamoto released the Bitcoin whitepaper titled “A Peer-to-Peer Electronic Cash System” in 2008, halving events have occurred approximately every four years, gradually decreasing the rate at which Bitcoin is issued. These halvings are closely related to the bull market cycles of the entire crypto market.
Nakamoto stipulated that every 210,000 blocks, the block reward for miners would be halved until the year 2140, when the block reward would reach 0 and all 21 million Bitcoins would be issued. Bitcoin has already experienced three halvings at block heights 210,000, 420,000, and 630,000. Currently, the block height is 818,670, and when it reaches 840,000, Bitcoin will undergo its fourth halving, reducing the block reward from the current 6.25 BTC to 3.125 BTC.
The essence of Bitcoin halving is to decrease the issuance rate of Bitcoin, thereby limiting its supply. Based on historical data, Bitcoin’s price has experienced significant increases within 6 to 12 months after each halving, providing market participants with an excellent opportunity to seize the bull market window.
Let’s take a brief look at the previous Bitcoin halving events:
1. First Halving (November 28, 2012): Bitcoin’s price surged from $12.3 to $1,175, a staggering increase of 9,552.85%.
2. Second Halving (July 9, 2016): Bitcoin’s price soared from $648.1 to $19,800, an increase of 3,055.08%.
3. Third Halving (May 2020): Bitcoin’s price jumped from $8,560.6 to $67,775.3, a remarkable increase of 791.71%.
Each halving marks the beginning of a new market cycle for Bitcoin, leading to changes in investor and miner behavior. With the slower generation of new Bitcoins after halving, the phenomenon of market demand outpacing supply becomes more apparent, often resulting in an increase in the price of Bitcoin.
The general consensus is that Bitcoin’s price will follow a similar pattern to the previous three halvings and rise due to the restricted supply of new coins. Looking at historical data, Bitcoin’s price increased by 8,450% after the first halving in 2012, 290% after the second halving in 2016, and 560% after the third halving in 2020.
For investors, halving means a reduced frequency of new Bitcoin generation and a decreased tendency for miners to sell. Historical data shows that the anticipation of scarcity has a positive impact on investor psychology. Investors expect the value of Bitcoin to rise, leading to potential further purchases. Additionally, the introduction of Bitcoin futures ETFs also promotes more external capital entering the market, resulting in increased demand for Bitcoin. Investors become more optimistic about the growth potential of other cryptocurrencies, driving up their prices as well.
In such a market backdrop, it becomes crucial to utilize advanced AI trading technology to capture investment opportunities. The 3EX AI trading platform, through precise data analysis and machine learning, provides users with efficient trading strategies to help them find the best entry and exit points in the market fluctuations brought about by Bitcoin halving.
Here are some features of the 3EX AI trading platform:
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At this turning point, using the 3EX AI trading platform to guide trading decisions through advanced AI technology is undoubtedly a wise choice to seize market opportunities and achieve asset appreciation. Register with the 3EX AI trading platform now and embark on your journey of intelligent trading, together let’s seize the next bull market window brought about by Bitcoin halving!
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