What is Bitcoin halving?Only the most exciting event on the crypto calendar! Halving only occurs every four years and attracts a lot of new investors to the crypto space.
Bitcoin Halving has to do with halving the amount of BTC that miners can generate. Currently, 12.5 new BTC is created every 10 minutes. With the upcoming halving event, only 6.25 BTC will be created every 10 minutes.
BTC has a total supply of 21 million tokens. Currently, about 18 million tokens have been mined. It is said that all BTC will be mined by the year 2140. So, what will happen once all the tokens have been mined? No one knows for sure. Generally, the rule of low supply and high demand that indicates a price increase may apply in this situation. Unless the BTC protocol is adapted to allow for more coins.
Historic Bitcoin Halving price dataIn order to make sound investment decisions, one needs to look at historic Bitcoin Halving charts to see how the price reacted. When BTC was created on the Genesis block in 2009, 50 new BTC were created every 10 minutes.
First Bitcoin HalvingThe first Bitcoin Halving event occurred on 28 November 2012. Leading up to the first halving event (in June 2011), the price of BTC started to increase. However, after halving, the price of BTC increased by nearly 8 000% to reach $1 000 by November 2013. In December 2013, BTC entered a bear market. At this time, the infamous Mt. Gox hack occurred.
During the event, the BTC issuance rate went from 50 new BTC being created every 10 minutes to 25.
BTC bottomed two years later in October 2015 after retracing more than 80% from its halving all-time high.
Second Bitcoin HalvingOn 9 July 2016, the BTC block reward was again halved and reduced to 12.5 new BTC being created every 10 minutes. The second Bitcoin Halving event actually occurred earlier than the 4-year period. Only 1 316 days or 3.6 years had passed between the first and second event. Already in October 2015 (9 months prior), BTC started its uptrend in anticipation of the upcoming halving event. Leading up the Bitcoin Halving, the price increased with 112% during the 9-month period. In July 2016 the price of BTC was trading around $650.
The bull run occurred at the end of 2017 when BTC increased by 2 800% over the 18-month period. BTC hit a new all-time high of $20 000.
Following the previous halving, the price of BTC corrected by almost 80% after the 2017 bull run. It reached a bottom of $3 200 in December 2018.
Possible Bitcoin Halving 2020 scenariosThe price of BTC could follow previous halving patterns. This means leading up to the event (12 May 2020), the price of BTC could increase. After the event, the price could correct in the short term to slowly but surely increase in the months to follow. At this stage, one cannot predict how high the price of BTC may go leading up the event. Some chart analysists are calling for an increase to $11 000 and even $13 000. Others are saying the price is likely to stay in its current price range ($8 500 - $9 000 range). Bitcoin maximalists are questioning whether BTC will correct at all after halving, in light of the current worldwide economic turmoil. There is a lot of uncertainty in the market at the moment. So, stay vigilant and keep an eye on the Bitcoin Halving Countdown Clock.
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