The $1 trillion question: what will happen to Bitcoin’s price after halving? If history is our guide, not much. What did Bitcoin’s price do after the three previous halving events? In 2012, bitcoin’s price languished for more than a month. In 2016, its price dropped and took four months to get back to even. In 2020, its price stayed flat for two months. See for yourself: Don’t be surprised if we get a similar outcome this time. Typical operation To summarize a far more nuanced, complicated story: In 2024, we caught a massive bid. This round of speculative enthusiasm pushed Bitcoin’s price to a new all-time high. The market found itself overextended in a way we’ve never seen heading into a halving event. Today, there’s no reason to think this market can’t go a little higher for a little longer, simply on the momentum it’s built up for months. Stepping back from the day-to-day commotion, we’re still at extremes on many market metrics. I have shared the reasons in my newsletter. Crypto is Easy It all makes sense and fits historical patterns. I guess we’ll see whether these bids keep pouring in at the pace we’ve seen in the past two months. Otherwise, we could have a bumpy road ahead. But Mark, the ETFs! Those Wall Street ETFs have taken in $12 billion in new inflows. While that is a substantial accomplishment and certainly helpful, it can’t count for the $650 billion rise in Bitcoin’s market cap — even if you give the ETFs a generous multiplier effect. Anyway, how sure are you that Aunt Sally, Uncle Morton, and the pickleball crew haven’t already gotten their 1–3% allocation? If that’s the case, they have no reason to put more money into the ETFs. One less point: ETFs let people buy . So far, we’ve seen a lot of buying and not a lot of selling. and sell What happens when that changes? In recent weeks, net inflows have crashed. Some days, they’re negative. See for yourself, from : Farside Investors UK Is the trend starting to shift, or is it no big deal? We’ll see. Mark, do you mean Bitcoin’s price will never go up? On the contrary, its price will do just fine. The halving will cut new issuance in half — equivalent to roughly $11 billion per year at today’s prices. That’s almost $1 billion less selling pressure on the market each month (more as the price goes up) and as much as the Wall Street ETFs brought in this year. While $1 billion each month is not a lot for an asset as large as Bitcoin, it’s enough to make a difference. And, unlike those ETFs, those Bitcoins are off the market forever. Supply from those ETFs can hit the market at any time. We also have a strong base of advocates (that now includes major Wall Street firms), people who consistently, habitually buy Bitcoin all the time, and speculators who see financial opportunity in it. The halving helps push that process along. Sometimes, it takes longer than you expect to see the result. I would expect the same will “HODL” true this time. $150,000 is still possible by the end of 2025. If it happens, the halving will play a key role. In the near term, expect something far less spectacular. Mark Helfman publishes the newsletter. He is also the author of three books and a top Bitcoin writer on and . Learn more about him in his and connect with him on or . Crypto is Easy Medium Hacker Noon bio Superpeer Tealfeed

The Best Strategies for Investing in Crypto in 2024 

Cryptocurrency: Only a Scam When You Can’t Make Money Off of It

Crypto is Easy Newsletter

Nominated for 2022 - HackerNoon Contributor of the Year - Cryptocurrency

Nominated for 2022 - HackerNoon Contributor of the Year - Investing

Nominated for 2022 - HackerNoon Contributor of the Year - Bitcoin

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Trading

Nominated for 2022 - HackerNoon Contributor of the Year - Money

Too Long; Didn't Read

How Much Will Bitcoin’s Price Go Up After This Month’s Halving?

How Much Will Bitcoin’s Price Go Up After This Month’s Halving?

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

2020 is The Year Wall Street Could Take Over Cryptocurrency

4 Reasons Trading In Bear Markets Does Not Work

89 Stories To Learn About Bitcoin Price

A Detailed Breakdown of Bitcoin's Four Year Cycles

Are Crypto Markets Positioned for the Next Uptick?

Bad News for Bitcoin? - All Press is Good Press

2020 is The Year Wall Street Could Take Over Cryptocurrency

4 Reasons Trading In Bear Markets Does Not Work

89 Stories To Learn About Bitcoin Price

A Detailed Breakdown of Bitcoin's Four Year Cycles

Are Crypto Markets Positioned for the Next Uptick?

Bad News for Bitcoin? - All Press is Good Press

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps