Bitcoin Halving to Take Place Tonight: Will Bitcoin Really Surge After the Halving?
The Bitcoin halving is happening tonight. Everyone believes that this event will positively impact the price of Bitcoin (BTC). However, there are no guarantees!
Today is a crucial day for the cryptocurrency community as the most significant cryptocurrency, Bitcoin (BTC), will undergo a halving event. This means that miners’ rewards will be halved. Considering past events, cryptocurrency investors have high expectations for this situation.
Bitcoin halving has occurred in 2012, 2016, and now in 2020. According to Binance’s counter, this event will take place around 02:15 tonight, after every 210,000 blocks. This marks the beginning of a new era for the Bitcoin network.
What happened during previous halvings?
The price of Bitcoin (BTC) was trading around $12 before the first halving on November 28, 2012. About six months after the first halving, it reached levels around $130. The second halving occurred on July 9, 2016, which led to the price rising from $660 to over $900. The most recent halving on May 11, 2020, saw the price of BTC increase from $8,600 to $15,700 within six months.
But that’s not all. For example, the Bitcoin halving in May 2020 led to a significant bull market afterward. In this context, the BTC price rose to as high as $69,000. Therefore, cryptocurrency investors believe they will make significant profits from this halving as well.
However, nothing is guaranteed!
In the past, previous halving events have had a positive impact on the price of BTC. However, this doesn’t mean that every halving will have the same effect on the price. The price of BTC and other crypto assets is influenced by factors beyond just halving.
To give a simple example, serious turmoil in the Middle East can affect the crypto markets significantly. Tensions between Israel and Iran, for instance, have led to substantial losses in the crypto markets. Ultimately, the value of something depends on how much value is attributed to it and invested in it, and during extreme events like war, investors tend to avoid keeping their money in the market.
If you’re a cryptocurrency investor, don’t rely solely on halving for your hopes. Practice good risk management and avoid investing money you can’t afford to lose. Otherwise, you could end up losing all your money.
