• bitcoinBitcoin (BTC) $ 64,158.00 3.86%
  • ethereumEthereum (ETH) $ 3,139.03 3.31%
  • tetherTether (USDT) $ 0.999123 0.08%
  • solanaSolana (SOL) $ 145.91 7.28%
  • usd-coinUSDC (USDC) $ 0.999983 0%
  • xrpXRP (XRP) $ 0.523728 4.5%
  • dogecoinDogecoin (DOGE) $ 0.149656 7.56%
  • cardanoCardano (ADA) $ 0.471456 6.07%
  • shiba-inuShiba Inu (SHIB) $ 0.000025 8.56%
  • avalanche-2Avalanche (AVAX) $ 35.81 8.54%
  • wrapped-bitcoinWrapped Bitcoin (WBTC) $ 64,155.00 3.91%
  • bitcoin-cashBitcoin Cash (BCH) $ 475.77 6.35%
  • polkadotPolkadot (DOT) $ 6.89 5.85%
  • chainlinkChainlink (LINK) $ 14.57 5.1%
  • litecoinLitecoin (LTC) $ 83.21 3.44%
  • uniswapUniswap (UNI) $ 7.64 5.28%
  • terra-lunaTerra Luna Classic (LUNC) $ 0.000102 8.95%
  • binance-usdBUSD (BUSD) $ 1.00 0%

In this article, we’re going to take a quick look at the current crypto market. With an exciting 2023 so far with assets performing well even against harsh macro conditions such as banks closing down and battling inflation.

There is one event that is approaching fast that has played a significant part in the start of previous bull runs, and that is the Bitcoin halving. If you have not heard of it before kick back and read on to learn what it is when it’s happening, and how it may affect the markets.

What is the Bitcoin halving?

The Bitcoin halving happens every 4 years or every 210,000 blocks that are mined on Bitcoin. What the halving does is it cuts the number of rewards that Bitcoin miners receive for mining new blocks in half.

Slashing these rewards in half reduces the rate at which new Bitcoin is mined, this helps to control the supply of Bitcoin and prevent inflation. One of the bullish outlooks of this is that due to the increasing difficulty to generate coins, this will incentivize miners to hold onto their coins reducing the selling pressure.

When is the next Bitcoin halving happening?

With the Bitcoin halving happening roughly every 4 years the previous halving was in May 2020, this places the next Bitcoin halving to be roughly sometime in May 2024.

The first Bitcoin halving was in November 2012 and the second being in July 2016, this makes the approaching Bitcoin halving the fourth halving to of happened. So be sure to mark your calendars and keep an eye on the next Bitcoin halving as we’ll get into how the assets have performed around this event in the past.

Asset performance at the previous halvings

Around the time of all the previous halvings, the markets experienced violent moves in both directions, generally ending with Bitcoin performing quite well due to the scarcity and reduced supply of Bitcoin due to the halving.

The first halving which happened in November of 2012 caused the Bitcoin price to skyrocket from $12 to almost $1,000 in just a year. Of course, there may have been other factors but let’s look at the rest of the halvings to see if there is a recurring theme.

The second halving happened in July 2016 however the price initially dipped but ended up rising to $2,200 by the same time the next year, 2017, we all know how Bitcoin performed in 2017 reaching an at the time all-time high of $19k.

The third and most recent halving was in 2020, at the time Bitcoin was around $8,000, unless you’ve been under a rock you know how 2020 and 2021 performed, very well.

So do we have a recurring theme here? Quiet possibly. The Bitcoin halving definitely seems to have an effect on the market generally to the upside in the mid to longer term.

Current market conditions

So with the next Bitcoin halving only around a year away, what can we take away from this?

With previous halving the market has seen a shift in price action anywhere from 6 to 12 months prior to halving which could be the markets trying to “price in” the halving, is that what we are seeing now with the recent rally from 19k right up to 28k?

It’s hard to tell and is anyone’s guess, however, with around a year till the next halving and the markets looking healthy it could be a great time to dollar cost average and start accumulating solid projects with strong fundamentals.

Conclusion 

Going over the history of Bitcoin we can see that the halvings definitely play a significant role in the start of new bull runs, the million-dollar question, however, will this run be the same? Can we expect another true Bitcoin bull run next year due to the halving?

Only time will tell.

As mentioned previously it is always a good time to accumulate fundamentally strong projects to hold for the coming bull run.

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