Bitcoin, the largest cryptocurrency by market cap, prepares for its next and third periodic halving, which is fixed to hold by May 2020. The crypto space, especially BTC fans and investors anticipate the rare event due to the benefits it had previously served in terms of notable price uptrend.
As another halving gets closer, a crypto commenter and analyst by the name Rekt Capital, recently analyzed what to expect in the forthcoming halving after comparing the first and the second Bitcoin halving.
Bitcoin Halving is an event that takes place every four years. An event whereby, the amount of BTC mined every 10 minutes is reduced by half. 12.5 Bitcoin produced every ten minutes will be slashed by 50% to 6.25 BTC.
As it is generally known that the maximum supply of Bitcoin is 21 million, so the reduction of miners’ block reward by 50% will make circulation of BTC take longer. This scenario automatically reduces the daily supply of Bitcoin, which will literally increase its scarcity.
Economically, when a commodity with notably high demand becomes scarce, it will steadily increase its market value.
So, Rekt Capital took upon himself to release an elaborate article about the first and second halving, and the fortune which the forthcoming could usher in for traders and investors.
How Much Bitcoin Gained After the First Halving in 2012?
In November 2012, the first of its kind Bitcoin halving was conducted. After the event played out, BTC made a steady price increase from relatively $2 to around $270 in a bit less than two year. That’s a substantial increase of over 13,000%.
The first ever Bitcoin halving and its positive outcome plunged the digital currency into its much needed growth and broadened its reach in terms global popularity.
However, BTC later lost its accumulated gains to the bear market that showcased in 2013. This aided Bitcoin to experience about 80% downtrend.
How About Bitcoin’s Second Halving in 2016?
After the second Bitcoin halving, which took place in 2016, BTC also gained steadily like it did during the first halving. The digital currency increased from $164.01 to $20,074, which still remains its price all-time high. That’s relatively 12,000% price upsurge.
After Bitcoin attained its highest price ever, as usual, BTC was hit by a 51-week bear market, which brought the largest digital currency to $3,100 price region.
Now that Bitcoin’s Third Periodic Halving Approaches
Bitcoin price bottomed in the middle of December 2018, and has since been displaying its high volatility as it grows. About three months ago, BTC embarked on a parabolic movement that aided its price to test a new yearly high of relatively $13,900.
However, the cryptocurrency later experienced a high volume of pullback that almost brought its price down to $8,000 price region. At press time, BTC is trading at $10,401.21, with approximately 1% price plummet in the last 24 hours.
Each halving has indicated a massive growth for Bitcoin on both occasions. So, the past price actions mentioned above have quite enhanced the chances of BTC increasing by a very large percentage as the third halving closes by.
According to Rekt Capital’s sentiment on Twitter, captioning the article that contains his well analysed price actions of Bitcoin after each halving, the “pre-Halving History shows that we have no excuse not to own Bitcoin after Halving 3”