Bitwise Investment Director Matt Hougan and Senior Cryptocurrency Analyst Juan Leon meticulously studied historical data on Bitcoin halvings. They discovered that in 2012, 2016, and 2020, Bitcoin’s price experienced a 9% growth, a 10% drop, and a 6% increase, respectively, within the first month after the halving event. However, when looking at a span of one year, the overall growth after each halving was an impressive 8,839%, 285%, and 548%, respectively. Additionally, spot trading volumes consistently increased every year following the reduction in mining rewards.
“Admittedly, our data is limited since we only have three instances to work with. Nonetheless, the pattern that emerges is highly intuitive and suggests that short-term price fluctuations after halving are negligible, while the long-term impact is often underestimated,” noted the Bitwise analysts.
Last year, Bitwise analysts predicted that Bitcoin’s value would surpass $80,000 by 2024.