The price of Bitcoin has begun a rally to the upside, sparking excitement in the crypto market as several traders and analysts predict a continuous rally.
With Bitcoin currently trading at $66,224 as of the time of writing this report, the crypto asset has resumed its upward price trajectory, with the volume rising to 14.63% to $25.03 billion in the last 24 hours, amidst bullish predictions.
It is understood that due to the just concluded Bitcoin halving event that occurred on April 20, the price of Bitcoin is expected to move upwards.
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Historically, the price of Bitcoin has followed a four-year cycle believed to be associated with each halving event. There has been a reliable pattern of rallies and blow-off tops before and after the halving.
While past performance does not guarantee future results, these historical precedents suggest that the reduced supply of new bitcoins entering circulation after a halving can lead to increased scarcity and, consequently, higher prices.
A Look at Previous Bitcoin Halving Events
Halving 1
- The first halving occurred on November 28, 2012, and reduced the block reward to 25 BTC from 50 BTC.
- Price of Bitcoin at time of halving: $13
- Following year’s peak: $1,152
Halving 2
- The second halving occurred on July 16, 2016, and reduced the block reward to 12.5 BTC.
- Price of Bitcoin at time of halving: $664
- Following year’s peak: $17,760
Halving 3
- The third halving occurred on May 11, 2020, and reduced the block reward to 6.25 BTC.
- Price of Bitcoin at time of halving: $9,734
- Following year’s peak: $67,549
With the just concluded fourth halving event, there are significant bullish predictions of the price of Bitcoin. CoinCodex sees a BTC price peak above $170,000 in August 2025 before a retracement to levels near $95,000 to $100,000. BitQuant believes there will be a new all-time high sometime during the pre-halving rally, with the post-halving peak seeing prices over $250,000.
While the halving event is often preceded by a Bitcoin price rally, several analysts have warned against overly simplistic expectations of post-halving price surges, pointing out that Bitcoin’s price trajectory over the past years has been shaped by several external factors such as economic trends, monetary policies, the stock market, etc.
Notably, amid the ongoing discussions surrounding the recent Bitcoin halving and its potential impact on prices, analysts are divided between long-term optimism and short-term caution regarding market volatility.
Analysts and several crypto experts are closely monitoring the market, with prominent figures providing insights into potential future trends. This analysis has injected fresh optimism into the market, fueling anticipation among investors.