Crypto investment firm Bitwise warns that the market may be underestimating the long-term price effects of Bitcoin halvings.
Halving History
After previous halvings in 2012, 2016, and 2020, Bitcoin’s price initially rose or fell modestly in the first month. However, it soared in the following years:
- 8,839% after the 2012 halving
- 285% after the 2016 halving
- 548% after the 2020 halving
Trading Volume Growth
Bitwise also notes that Bitcoin’s spot trading volumes have increased after each halving.
Long-Term Impact
Matt Hougan, Bitwise’s Chief Investment Officer, and Juan Leon, a senior crypto research analyst, believe that:
“The market prices in the short-term impact of the halving but underestimate the long-term impact… The data suggests that long-term, the halving may be conducive to price appreciation.”
Halving Date
The next Bitcoin halving is expected on April 20, 2024, according to NiceHash. At the time of writing, Bitcoin is trading at $61,486, down over 3% in the past 24 hours.
