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Polskie Stowarzyszenie Bitcoin

Bitcoin Halving and Value Drops: What Will the Latest Phenomenon Bring?


Bitcoin and Halving – Decline in Cryptocurrency Value

The upcoming event of Bitcoin’s halving has brought the expected decrease in the value of the cryptocurrency. Bitcoin dropped below $65,000, marking a 12% decrease from its all-time high and nearly 10% decrease since the beginning of April. A similar pattern was observed in March when Bitcoin reached its peak and then fell to around $60,000, representing a 17% decrease.

Bitcoin Value History Before Halvings

Historical data shows that before previous halvings, Bitcoin experienced comparable or even greater declines in value. Before the first halving in November 2012, Bitcoin saw a 40% decline in August and a 23% decline in October of the same year. Similarly, before the second halving in July 2016, Bitcoin recorded a 22% drop in June and then an 18% drop in August post-halving.

Anomaly After the May 2020 Halving

After the halving in May 2020, an anomaly occurred in the form of a 53% value drop, which was attributed to the impact of the COVID-19 pandemic. Nonetheless, Bitcoin fully recovered from this decline in the same month. In the case of the last halving in 2020, Bitcoin showed a 14% decrease just before the event.

Volatility During Halving Periods

This volatility may concern some investors, but it aligns with the characteristic fluctuations seen during halving periods. Similar declines in the cryptocurrency’s history indicate the existence of a certain pattern, which is not new to the digital asset market. Therefore, the observed decreases in Bitcoin’s value before halving should not surprise experienced players in the cryptocurrency market.

The value of Bitcoin depends on various factors, and halving is one of the key events that can influence its price. Despite short-term declines, historically speaking, Bitcoin has often rebounded from such situations and continued to evolve. Cryptocurrency investors should closely monitor such events, considering market volatility and the potential for long-term development of digital asset values.