Bitcoin price prediction after halving

Halving It is one of the most important events related to Bitcoin and digital currencies in general, which in the past and for the long term, has always had an impact on a positive on the price. In this article, we explain how hawing can be done Bitcoin price be effective and after the upcoming halving in April this year (April 1403), what will the price probably react in the short and long term.

Why does halving affect the price of Bitcoin?

Halving is a scheduled event at the Bitcoin protocol level that halves the reward for mining each block from the network at periodic intervals of 4 years (after every 210,000 blocks). The first bitcoin halving happened in 2012, and after that the reward for mining each block was reduced from 50 to 25 bitcoins. Subsequent halvings occurred in 2016 and 2020, respectively, after each of which the reward for mining Bitcoin network blocks reached 12.5 and 6.25 BTC, respectively.

Analysts consistently cite halving as a long-term bullish factor, as it slows down the supply of new units to the network and, as a result, can make the asset more valuable over time. Of course, it should be kept in mind that the other side of the supply reduction story is the amount of demand, and the theory that halving makes Bitcoin more valuable over time is based on the assumption that the demand for this digital currency does not decrease significantly over time; It means to remain almost constant or increase.

The effect of previous halvings on the price of Bitcoin

The image below shows the logarithmic chart of the Bitcoin price in a week view, and the vertical yellow lines are the exact dates of the previous Bitcoin halvings. As you can see, in the previous three halvings, without exception, the price has experienced significant growth in the long term. To be more precise, after the first, second and third halvings, the price of Bitcoin has experienced growth of 9,500, 3,000 and 730%, respectively, until reaching the peak of its long-term cycle.

Considering the issue of slowing down the supply of new units after each halving, as well as historical data, it can be said that experts agree on the increase in the price of Bitcoin after this event. Therefore, in the rest of this article, we will examine the analysts’ predictions about the price targets of Bitcoin after the upcoming halving.

Bitcoin price predictions after halving

Due to the importance of halving for digital currency investors, many collections and experts have published their prediction of the price target of Bitcoin after this event, some of which are listed below. Just keep in mind that these analysts have mostly taken into account factors other than halving, such as the approval of Bitcoin Cash ETFs in the US.

Although analysts do not disagree about the long-term growth of Bitcoin after the halving, some believe that this event could follow the traditional rule. “Buy with rumors and sell with news”in the early days and for a short period of time, it will be accompanied by a decrease in the price of Bitcoin due to the profit storage of a part of the market.

Conclusion

By slowing down the supply of new units on the Bitcoin network, halving is expected to naturally increase the price of this digital currency over time. However, external events always affect the financial markets, and the Bitcoin market is no exception, and the price reaction to the halving may not be as expected due to several reasons, such as negative news.

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