Bittime - Bitcoin (BTC), the most famous crypto asset in the world, experiences a phenomenon called"halving day"every 4 years. Interestingly, historically this event has generally had a positive effect on Bitcoin price movements. This is why, the question arises: is it better to buy Bitcoin before or after the halving?
This article will discuss in full several aspects that can be taken into consideration when deciding whether to buy Bitcoin or not. Come on, take a look!
A Glimpse into What Bitcoin Halving Is
Bitcoin halving is an event once every 4 years, where the Bitcoin block reward amount is cut in half from the amount obtained from the previous halving. Specifically, every 210,000 new blocks, the amount of BTC given as a reward to miners will be halved.
Initially, in 2009, the block reward was 50 BTC. After the first halving in 2012, it was 25 BTC per block. In the second halving in 2016, it was reduced to 12.5 BTC per block. The third halving occurred in 2020, bringing the block reward to 6.25 BTC.
In general, halvings impact the Bitcoin economy due to a sharp drop in new supply. With limited supply, some believe that the halving could lead to an increase in Bitcoin's value if demand remains stable or increases.
However, the crypto market is very complex, and other factors can also influence the value of Bitcoin. Halving is also part of the Bitcoin consensus protocol designed to provide security and incentivize miners to support the network.
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Bitcoin Price Patterns Before and After Halving
One of the main aspects to pay attention to is the Bitcoin price pattern which tends to follow a 4 year cycle along with the halving period. Since its creation in 2009, Bitcoin has experienced three halvings, namely in 2012, 2016 and 2020.
Below is historical data on Bitcoin price movements before and after the halving taken from the CoinMarketCap site.
The first halving occurred on November 28, 2012
At the time of the first halving, Bitcoin rose from around 12 US dollars in early 2012 and touched its all time high (ATH) at around 260 in April 2013.
The Second Halving Occurred on July 9, 2016
At the time of the second halving, Bitcoin rose from around 650 US dollars in early 2016 and touched the ATH level of around 20,000 US dollars in December 2017.
The Third Halving Occurred on May 11, 2020
At the time of the third halving, Bitcoin price rose from around 7,200 US dollars at the start of 2020 and touched an ATH of over 60,000 dollars in April 2021
While past performance does not necessarily reflect the future, the cyclical pattern is interesting. Moreover, the next Bitcoin halving is scheduled to occur in 2024, which is only a few days away.
Also Read How to Buy Crypto:
Some Things to Pay Attention to in the 2024 Bitcoin Halving
Historically, leading up to a halving, Bitcoin prices often increase. Investors and traders usually start moving by buying more assets, causing price spikes. This is fueled by enthusiasm and the hope that a new supply drop will increase the value of BTC. After the halving, a more dramatic price spike may occur, opening up profit opportunities for those who bought earlier.
While buying Bitcoin before the halving can be an attractive option, especially with the history of frequent price rallies leading up to the event, it is also important to conduct thorough research and understand current market trends. Fundamental and technical analysis can provide additional insight into market conditions and help investors make more informed decisions.
With all this in mind, investing in the crypto world remains high risk, and the decision to buy Bitcoin before or after the halving should be based on a deep understanding of the market and individual investment goals.
As an investor, it is always important to keep up with Bitcoin price developments and news in the crypto space as a whole to ensure that investment decisions are based on accurate and up-to-date information. To monitor today's Bitcoin price movements and other crypto assets in real-time, you can use the Bittime market.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime in BTC IDR and BTC USDT pairs. To be able to buy BTC IDR and BTC USDT on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet.
For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Bitcoin Halving: What is it and when does it happen?
What Will Happen to the Bitcoin Network After the Halving?
Bitcoin Halving 2024: What Will Happen to the Miners?
DISCLAIMER: This article is informational in nature and does not constitute advice, recommendation, offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly over time. Bittime is not responsible for changes in exchange rates or crypto asset prices.
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