Bitwise, a prominent crypto index fund management company, believes that the digital asset market often underestimates the long-term impact of Bitcoin (BTC) halvings. Through analyzing the previous halving events in 2012, 2016, and 2020, Bitwise discovered that BTC prices initially rose by 9%, then dropped by 10%, and finally increased by 6%, respectively.
However, what is truly remarkable is the significant surge in Bitcoin’s value in the year following each halving. After the 2012 halving, the price of BTC skyrocketed by a staggering 8,839%. Similarly, the year after the 2016 event saw a substantial increase of 285%, while the 2020 halving caused a remarkable price appreciation of 548%.
Bitwise’s Chief Investment Officer, Matt Hougan, and Juan Leon, a senior crypto research analyst at the company, also pointed out that Bitcoin spot trading volumes experienced growth in the year following each halving event. This data suggests that while the market seems to consider the short-term impact of halvings, it often fails to fully grasp their long-term influence. In fact, the data indicates that halvings may contribute to a significant appreciation in Bitcoin’s value over time.
The upcoming halving is currently set for April 20th, as reported by the hash rate marketplace NiceHash. At the time of writing, BTC is trading at $61,486. However, it has experienced a decline of more than 3% in the past 24 hours and over 12% in the past week.
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