{"id":31092,"date":"2024-04-12T07:43:49","date_gmt":"2024-04-12T07:43:49","guid":{"rendered":"https:\/\/icoinmarket.com\/how-bitcoin-halving-influences-price-and-investors-sentiment\/"},"modified":"2024-04-12T07:43:49","modified_gmt":"2024-04-12T07:43:49","slug":"how-bitcoin-halving-influences-price-and-investors-sentiment","status":"publish","type":"post","link":"http:\/\/icoinmarket.com\/how-bitcoin-halving-influences-price-and-investors-sentiment\/","title":{"rendered":"How Bitcoin Halving Influences Price and Investors’ Sentiment"},"content":{"rendered":"
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The Bitcoin halving is a critical event in the cryptocurrency market, where the rate of new BTC supply issuance is halved. This reduction is expected to increase scarcity and potentially drive up the price, particularly if demand remains constant or increases. <\/p>\n
The upcoming Bitcoin halving has sparked significant interest and speculation, with many experts predicting substantial price increases.<\/p>\n
Historically, Bitcoin has experienced significant price hikes following halving events, though not immediately. Hannah Phung, Lead Data Analyst at SpotOnChain, told BeInCrypto that price increases tend to occur around 6 to 12 months post-halving. <\/p>\n
For instance, after the first halving in November 2012, the price rose from around $12 to over $1,000 by late 2013. Similarly, the second halving in July 2016 saw the price of Bitcoin skyrocket from around $650 to nearly $20,000 by December 2017. The third halving in May 2020 resulted in the price surging from around $8,000 to an all-time high of $69,000 by November 2021.<\/p>\n
\n\u201cIn theory, the supply reduction increases scarcity, consequently driving up the price, especially if demand remains stable or rises. Moreover, the reduced supply also means miners have fewer BTC to sell to cover their costs, decreasing selling pressure,\u201d Phung emphasized.<\/p>\n<\/blockquote>\n
Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024<\/p>\n