This trajectory aligns with the historical timing of previous price recoveries. For instance, Bitcoin has gained almost 55% in 2023, representing a rebound from the previous year’s bear market. Interestingly, these bear markets began to lose momentum approximately 15 to 16 months before the subsequent halving. For instance, Bitcoin has been battered by high inflation and interest rate decisions over the past year.Īfter the past three halving events, Bitcoin experienced substantial triple-digit price surges, reaching new all-time highs within 12 to 18 months before entering significant downtrends. Larger macroeconomic factors likely played a significant role, particularly in the form of favorable fiat liquidity conditions led by institutional capital inflow into the asset. It is worth noting that past halving events didn’t solely trigger bull markets. Will the next halving event trigger a price rally? These historical patterns have fueled optimism among investors and speculators as they eagerly await the next 29 halvings and their potential impact on the cryptocurrency’s price, with 2024 as the next main focus. The most recent halving in May 2020 saw Bitcoin’s price soar from approximately $8,000 to almost $69,000 in late 2021. Similarly, after the 2016 halving, Bitcoin’s price substantially increased to $20,000 by the end of 2017. Following the first halving in 2012, the price of Bitcoin surged from less than $12 to about $1,000 within a year. Historical data indicates that Bitcoin’s price has experienced significant rallies after previous halving events. This scarcity, combined with growing demand, has historically driven up the price of Bitcoin. With the remaining 29 halving events, Bitcoin’s predetermined scarcity is often cited as one of the primary factors contributing to the asset’s potential value appreciation. What to expect from the remaining 29 Bitcoin halving events Additionally, it curbs Bitcoin’s inflation by reducing new coin creation, aligning with its deflationary design. This impacts supply and demand, causing price fluctuations. Tighter regulations generally have prompted many traditional financial institutions to hold back on offering cash to crypto services and vice versa, he added.Besides reducing miner rewards, the halving event also affects the number of coins in circulation. Talking about the Singapore crypto market, Zhao said, "Singapore’s approach to crypto became more conservative after the collapse of FTX but the island remains crypto friendly overall." "With tightening regulations in the earlier part of this year, we're seeing a lot of traditional institutions that used to provide fiat ramp channels pull away," Zhao said. dollar for cryptocurrencies such as Bitcoin and Ethereum, have seen a decline in providers due to stringent regulations introduced earlier this year. These services, essential in exchanging fiat currencies like the U.S. “Today, to be very frank, it's actually fiat ramps,” Zhao said at the event. He underscored the critical role of fiat ramps in the expansion of the cryptocurrency market. At the recent Token2049 event in Singapore, Changpeng "CZ" Zhao, the CEO of Binance, highlighted the challenges in bringing the next 100 million users into the cryptocurrency space.
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