On 11 May this year the bitcoin halving took place. Since then bitcoin has risen by a factor of 2.2, which is more than during the previous cycle. This is shown by data from ChartsBTC on Twitter.
Bitcoin well on track
The graph above shows the increase of bitcoin in the first cycle (blue) and the second cycle (red). So far, each bitcoin half heralds the beginning of a new bull run. So far bitcoin method scam is still well on track, the price increase of now is slightly above that of the previous cycle of 2016 and 2017.
Striking, because in 2016 the bitcoin bull run started slower than now. If bitcoin keeps this up, bitcoin can increase with a higher factor than during the previous halving cycle.
Analyst PlanB agrees, he believes the price will accelerate in January 2021. According to him, at that time we can ’see a real leap‘, which marks the beginning of the real bull market. He also calls this phase 5. That is a phase in which institutional parties begin to see the value of bitcoin.
What is a bitcoin halving?
A bitcoin half takes place every (approximately) four years. During this bitcoin block halving, the reward of miners is halved. The last halving was from 12.5 bitcoins per transaction block to 6.25 bitcoins. This mineral reward is at the same time the influx of new bitcoins on the market. The bitcoin halving therefore has a direct influence on the new supply of bitcoins, and thus on the price. After all, is the (new) supply decreasing, and will the demand remain the same? Then, in theory, the price should rise.
Each cycle starts higher
ChartsBTC also shared an interesting chart last week. Each green bar represents a period of four years. For example, the first bar shows the price development from the beginning of bitcoin to the first half. The second bar shows the price from 2012 to 2016, and the third bar shows the price from 2016 to May 2020. The last bar continues until the next half of 2024.
The graph above shows that it is sometimes important to zoom out. The bitcoin price can make huge movements up and down, but the long-term trend is still up. What will be the new high point?