Whether you’re joining the 0.9 million+ Australians already investing in Bitcoin, or you’ve been HODLing for a long time, it’s important to know about the Bitcoin halving cycle, which can be utilised to build large profits once every four years. Even though there’s no guarantee in the crypto world, history suggests that Bitcoin halving boosts its price and even has the potential to spark a bull run.
What is the Bitcoin Halving Cycle?
The Bitcoin halving is an event written into the code, and its purpose is to cut the total supply of Bitcoin by half every four years until it reaches 21 million. However, we won’t be around to see this because this figure won’t be reached until 2140.
When Bitcoin’s supply reduces, it means there are fewer coins for investors to snap up, which inevitably leads to an increase in market value. During the last three halvings, the price increased, and a bull run occurred, which is why 2024 is set to be a profitable year for crypto holders.
When Are Bitcoin Halvings?
At the end of November 2012, the very first Bitcoin halving took place after around 10,500,000 coins were mined, which made up more than half the total supply. This was followed four years later in July 2016 and then again in May 2020.
That’s right, we’re almost at the end of the Bitcoin halving cycle, which means the next event will be on 22nd May 2024. If you’re not already holding Bitcoin in your wallet, Australian customers can buy Bitcoin on CoinSpot’s platform with ease.
What Does This Mean for Bitcoin’s Value?
By looking back over the first halvings, a clear pattern starts to emerge. Before the Bitcoin halving, the coin’s value begins to appreciate for around a year. In the year following the halving event, the value rises even higher until it reaches a peak. During the second year after a halving event, the price begins to drop again, which can go on for two years – when the next halving event takes place.
In the latest halving cycle, the coin reached an all-time high within the space of a year before plunging back to earth. Alongside Bitcoin, alternative coins saw significant rises in market value, with blockchain application development services.
How to Implement Bitcoin Halving into Your Strategy
History has already told us that the Bitcoin halving is directly related to an increase in value, so it puts investors in a strong position to prepare for May 2024. Given that we’re currently in an extremely bearish environment, now is the perfect time to invest in Bitcoin and other strong cryptocurrencies like Ethereum.
As with all crypto information, you have to make sure you’re willing to risk everything you invest. Crypto is extremely volatile and there are never any promises on price, but historical trends and logic are fairly solid on this one.
Now is a good time to invest in Bitcoin and make a profit during the next halving event. However, it’s important to remember not to get carried away by positive returns because the price will drop back down around a year later.