How The Bitcoin Halving Impacts Bitcoin’s Price
What is the Bitcoin Halving?
About every four years or more specifically every 210,100 blocks, Bitcoin networks’ issuance rate is cut in half. This is known as the Bitcoin Halving.
There have already been two Halvings since Bitcoin’s inception. The first was in 2012, and the second in 2016. These events have also lead to significant rises in the price of Bitcoin as well, with gains of over 1000% being common. The third Halving is quickly approaching and is set to occur sometime in May 2020. The block reward will be reduced to 6.25 BTC following this Halving.
This post focuses on how the previous two Halving’s affect Bitcoin’s price, and examines what trends, if any, are present.
The First Halving
The first ever Halving took place on November 28, 2012. One BTC during this time was worth about $12. An uptrend in the price of Bitcoin began to form about 1 year before the Halving. About 1 year before the event, 1 BTC was worth about $2.50, and 6 months before the event, 1 BTC was worth about $5.
