Bitcoin’s Value Soars to New Heights After Halving Cycles, Reveals CoinGecko Analysts
A recent report revealed that with each halving of mining rewards, the BTC rate surged by an astounding average of 3,230%. Take for instance the first halving on November 28, 2012, where the reward was slashed from 50 BTC to 25 BTC.
In just 12 months, the value of this digital asset surged from a mere $12 to a staggering $1,075, marking an impressive 8,858% increase. And as the years went by, the inflation rate saw a significant drop from 25.7% to 12% by January 2022.
On July 9, 2016, the mining reward was slashed in half, from 25 BTC to 12.5 BTC. But this was no setback – it sparked a frenzy in the market, with Bitcoin’s value skyrocketing by a staggering 294% in just one year. Witness the surge, as BTC’s price soared from $650 to an incredible $2,560. And as if that wasn’t enough, the inflation rate of the pioneering cryptocurrency was slashed from 8.7% to a mere 4.1%.
The third halving in Bitcoin’s history took place on May 11, 2020. As the block reward was cut in half to 6.25 BTC, the world held its breath in anticipation of what would come next. And within just one year, the value of Bitcoin skyrocketed by a staggering 540%.
From a humble $8,727, the BTC price surged to an impressive $55,847. But that was just the beginning. Fuelled by the excitement surrounding spot Bitcoin ETFs and optimistic investor predictions, Bitcoin charged into the new year with a bang, smashing through its previous record and soaring to an all-time high of over $73,000.
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This has been fueled by a surge of optimism for the crypto asset. Among these, the successful launch of approved Bitcoin ETFs stands out. This milestone has been instrumental in elevating Bitcoin’s merit to a new high, contributing to the positive sentiment in the market.
The highly anticipated halving event is a hot topic among analysts, with its potential impact on the market being a subject of much debate. The success of Bitcoin’s future growth hinges on a crucial factor: high demand.