- The two past halving events resulted in massive gains and even created new Bitcoin millionaires around the world.
- Experts say that the upcoming halving could see Bitcoin grind to new all-time highs.
Bitcoin is less than three weeks to its third halving since it was incepted in 2009. Halving is a rule integrated in Bitcoin code that ensures that mining rewards are slashed by half every four years. This ensures that the network controls inflation while at the same time, preparing Bitcoin to hit the 21 million coin maximum supply.
As this years’ halving approaches, investors and cryptocurrency enthusiasts are seating on the edge with bated breaths in anticipation of possible pre and post-halving rallies. According to Michael Dubrovsky, co-founder at PoWx, a crypto mining firm, in theory “there will be less Bitcoin available to buy if miners have less to sell.”
Consequently, the reduction in mining reward will see to it the number of Bitcoins coming into the market is decreased (lower supply). At the same time, if demand remains the same then price per Bitcoin is likely to go higher. Moreover, if the market encounters an increase in demand due to institutional investors and other parties such as millennials likely capitalize on the rising price of Bitcoin, therefore, a massive price movement would be expected in the months following the halving.
Can history repeat itself?
Data from the past halving events in the Bitcoin network says that the price tends to rally after halving. The first halving in 2012 saw Bitcoin hit an all-time high around $1,000 from $11. The most significant rally took place after the second halving in 2016 when Bitcoin rallied to highs around $20,000 from $700.
Bitcoin May halving projections
The upcoming halving in mid-May is expected to bring in impressive yields to Bitcoin price. Tim Draper, a billionaire investor believes that the price can rally to $250,000. Raoul Pal, a renowned commodities trader says that Bitcoin has the potential to hit $1 million especially if its market capitalization grows to match that of gold. Another expert and analyst on Twitter, Plan B, hints that Bitcoin price could hit $80,000 by 2022.
The previous halvings created numerous Bitcoin millionaires especially for the people who got onto the digital currency bandwagon early enough. For instance, Forbes quotes J.R. Forsyth as one of the people who benefited from Bitcoin immense growth over the years. According to Forsyth:
It became obvious to me that math-based currencies (like bitcoin) would eventually supplant sovereign notes. I mined bitcoin and litecoin very early on and held onto them. The massive appreciation of those assets allowed me to invest in other cryptocurrency technology which ultimately led to the development of Onfo.
If the May halving results in significant gains as the past two events, it is with no doubt that the world will be treated to more Bitcoin millionaires. Institutional investors have kept their interest up despite the crash on March 12. As halving approaches the influx of funds into Bitcoin is expected to go up in anticipation of significant gains.
At the time of writing, Bitcoin price is trading at $7,101. The largest crypto climbed above $7,800 during the Asian hours on Monday but hit a wall at $7,805. More bullish action is expected in the coming session with $8,000 as the initial target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
![Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
![Solana bears dominate market as SunPump has potentially led to less demand for SOL](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/Solana_Crypto_31_XtraSmall.jpg)
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
![AI tokens see narrow gains as Wall Street banks raise price targets on NVDA](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
![XRP back above $0.57 even as Ripple traders take $8 million in profits](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.