Are You Ready For The 2024 Bitcoin Halving? | Learn

2024 is proving to be a significant year for the world of crypto, with anticipation building among investors for the upcoming Bitcoin Halving.

On March 5th, 2024, Bitcoin reached unprecedented levels, surpassing its previous peak from November 2021. This achievement is particularly notable as it comes right before an important event known as the halving, highlighting Bitcoin's strong performance.

This event is drawing particular attention because of the historical effects on the market after the halving occurred. There's talk that this Bitcoin Halving could be different from the ones we've seen before. What makes this time special, and why are so many people paying attention? Let's take a closer look at what sets this halving apart.

History of Bitcoin Halvings

Bitcoin has been around since January 2009 and every four years it undergoes an event that reduces the supply of new bitcoin mined. This event is known as the halving. So far there have been three halvings, with each reducing the supply of new bitcoin mined into half. Historically, after the halving takes place, you’ll see Bitcoin’s price set new records approximately one year after it occurs. Let's look at the price of Bitcoin during and after the past three Bitcoin halving events.

The First Halving - November 2012

Price of Bitcoin During the Halving: ∼$12
Price of Bitcoin After the Halving: ∼$1,100

Before the first halving, Bitcoin was seen as an asset unfamiliar to most. After the halving, when its price soared to $1,000, it started making headlines.

The Second Halving - July 2016

Price of Bitcoin During the Halving: ∼$650
Price of Bitcoin After the Halving: ∼$18,000

Following the second halving, Bitcoin and other crypto assets stepped into the limelight. This period coincided with the emergence of new crypto assets, known as altcoins, and the Initial Coin Offerings (ICOs) boom.

The Third Halving - May 2020

Price of Bitcoin During the Halving: ∼$8,500
Price of Bitcoin After the Halving: ∼$69,000

The third Bitcoin halving was unique because it took place amid the 2020 COVID-19 pandemic, a time when the global economy faced significant challenges. Despite these conditions, Bitcoin's price trajectory followed its anticipated pattern breaking previous all-time high records.

Why the Upcoming Fourth Halving is Different from Others?

Ahead of the fourth Bitcoin halving, the SEC's approval of 11 Spot Bitcoin ETFs has injected a significant wave of capital into Bitcoin. This market activity, driven by financial institutions accumulating large amounts of bitcoin for their ETFs, has contributed to a reduction in Bitcoin's overall supply. According to economic principles, a decrease in supply typically leads to an increase in demand.

The combination of reaching new highs, the introduction of Spot Bitcoin ETFs, and basic market principles of supply and demand, places Bitcoin in the spotlight. These developments not only showcase its current success but also hint at its potential for future growth.

Are You Ready For The Bitcoin Halving?

As the Bitcoin halving approaches, investors are curious about its potential impact on Bitcoin's future, with anticipation building as the event draws closer. iTrustCapital has observed a significant increase in new accounts and clients buying Bitcoin, leveraging the tax benefits of an IRA to maximize their investments. Sign up today and take advantage of iTrustcapital’s easy-to-use platform available 24/7.

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This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

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