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CoinGecko analysts found that, on average, Bitcoin’s value skyrocketed following its previous halving cycles.
According to the report, after each mining reward was halved, the Bitcoin (BTC) rate increased by an average of 3,230%.
The first halving, dated Nov. 28, 2012, reduced the reward from 50 BTC to 25 BTC. Within 12 months of the halving, the asset’s value rose from $12 to $1,075. Over the year, the rate jumped by 8,858%. By January 2022, the inflation rate changed from 25.7% to 12%.
The second halving occurred on July 9, 2016, when the reward for mining a block was reduced from 25 BTC to 12.5 BTC. The market reacted with another Bitcoin rally, as the coin’s value increased by 294% over the year. BTC’s price increased from $650 to $2,560, and the inflation rate of the first cryptocurrency changed from 8.7% to 4.1%.
The third halving occurred on May 11, 2020, as the block reward dropped to 6.25 BTC. Within a year of the 2020 halving, the value of Bitcoin increased by 540%. The BTC price jumped from $8,727 to $55,847.
Bitcoin started the year strong, reaching an all-time high of over $73,000, mainly due to the hype around spot Bitcoin ETFs and positive investor expectations.
“This has been fueled by a surge of optimism for the crypto asset. Among these, the successful launch of approved Bitcoin ETFs stands out. This milestone has been instrumental in elevating Bitcoin’s merit to a new high, contributing to the positive sentiment in the market.”
As for the upcoming halving, its impact on the market depends on related factors, according to analysts. For further growth, Bitcoin must be fueled by high demand.
This article first appeared at crypto.news
