A recent report from CoinGecko analysts highlights the remarkable trend of Bitcoin’s value skyrocketing following its previous halving cycles.
According to the findings, after each mining reward halving event, the value of Bitcoin (BTC) surged by an average of 3,230%.
The first halving occurred on Nov. 28, 2012, reducing the reward from 50 BTC to 25 BTC. Within just 12 months of this event, Bitcoin’s value soared from $12 to $1,075, marking an astounding 8,858% increase. By January 2022, the inflation rate shifted from 25.7% to 12%.
The second halving took place on July 9, 2016, reducing the block reward from 25 BTC to 12.5 BTC. Following this, Bitcoin experienced another significant rally, with its value increasing by 294% over the year, from $650 to $2,560. The inflation rate of Bitcoin decreased from 8.7% to 4.1%.
On May 11, 2020, Bitcoin underwent its third halving, reducing the block reward to 6.25 BTC. Within a year of this event, Bitcoin’s value surged by 540%, jumping from $8,727 to $55,847.
Bitcoin kicked off the year with strong momentum, reaching an all-time high of over $73,000. This surge was largely fueled by optimism surrounding spot Bitcoin ETFs and positive investor sentiment.
The successful launch of approved Bitcoin ETFs played a significant role in elevating Bitcoin’s credibility and contributing to the positive sentiment in the market.
Looking ahead to the upcoming halving, analysts suggest that its impact on the market will depend on various factors. For sustained growth, Bitcoin must continue to be supported by high demand and positive market dynamics.
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