The Most Critical Topics in Bitcoin Halving: What You Need to Know

We know that Bitcoin halving is one of the most significant events in the world of cryptocurrency…

Occurring every four years and cutting miners’ earnings in half, this event theoretically contributes to the price increase of crypto assets due to its deflationary effect, thereby keeping the supply of Bitcoin under control.

However, this process seems likely to trigger a series of events that carry significant risks for the cryptocurrency ecosystem. Past experiences point precisely to this. For example, in the years following the halvings in 2012 and 2017, we observed significant increases in the price of Bitcoin (BTC). After the 2012 halving, the price increased 20-fold in 6 months, and in 2017, it increased 30-fold in 12 months, exciting investors. However, these increases were not permanent. As experienced in 2013 and 2018, when the excitement after the halving decreased, investors began to realize their profits, leading to sharp declines in prices.

The experiences gained indicate that the markets will experience plenty of speculation and accompanying volatility due to the halving. Investors try to determine their strategies to maximize benefits from the expected price movements, but incorrect approaches can affect…