The recent halving took place and shortly after, we are witnessing a 10% drop in the price of Bitcoin.
So, is there any truth to the comment about the "predictable post-halving dip"? Let's take a look at the historical price action of Bitcoin following previous halving events:
First halving: November 28, 2012 - The mining reward decreased from 50 BTC to 25 BTC per block. Bitcoin's price at the time was around $12.20. Indeed, in the months following the halving, the price of Bitcoin dipped, falling to around $6-7 by the end of November 2012. However, by the end of 2013, the price had skyrocketed to almost $1,000.
Second halving: July 9, 2016 - The mining reward was reduced from 25 BTC to 12.5 BTC per block. Bitcoin's price stood at approximately $640 at the time of the halving. Once again, a temporary decline occurred, with the price dropping to around $550 by the end of July. But by July 2017, Bitcoin's price had soared to $2,550.
Third halving: May 11, 2020 - The mining reward was halved from 12.5 BTC to 6.25 BTC per block. Bitcoin's price was around $8,750 at the time of the halving. A similar pattern emerged, with the price dipping to about $8,600 by the end of May. However, by April 2021, Bitcoin had reached a new all-time high of over $64,000.
Now, following the fourth halving in March 2024, we have witnessed another price drop of 10%, as mentioned earlier.
Based on this historical context, it seems that the comment about the "predictable post-halving dip" holds some weight!!
As I said, predictable.
Soaring to new highs in the next year or so is just as predictable.
