Bitcoin’s average increase after each halving reaches an impressive 3,230%, says CoinGecko.
CoinGecko analysts have discovered that Bitcoin’s value has experienced a significant surge following each of its previous halving cycles. The report reveals that, on average, the Bitcoin (BTC) rate increased by an impressive 3,230% after each mining reward was halved.
The first halving took place on November 28, 2012, resulting in the reduction of the reward from 50 BTC to 25 BTC. Within a year of this halving event, the value of Bitcoin rose from $12 to $1,075, experiencing a staggering rate jump of 8,858%. By January 2022, the inflation rate had decreased from 25.7% to 12%.
The second halving occurred on July 9, 2016, leading to the reduction of the block mining reward from 25 BTC to 12.5 BTC. The market responded with another rally for Bitcoin, causing its value to increase by 294% over the year. BTC’s price surged from $650 to $2,560, and the inflation rate for the first cryptocurrency dropped from 8.7% to 4.1%.
The third halving took place on May 11, 2020, resulting in a block reward of only 6.25 BTC. Within a year of this halving event, the value of Bitcoin skyrocketed by a remarkable 540%. The BTC price surged from $8,727 to $55,847.
Bitcoin had a strong start to the year, reaching an all-time high of over $73,000. This was mainly attributed to the excitement surrounding spot Bitcoin ETFs and positive investor expectations.
As for the upcoming halving, analysts state that its impact on the market will depend on various factors. For Bitcoin to continue growing, it will need to be fueled by high demand.
