2024

Wednesday

Bitcoin

<ul>
 <li><em>Historically, halvings have resulted in bull markets for Bitcoin.</em></li>
 <li><em>As BTC was getting scarcer, investors showed more willingness to HODL.</em></li>
</ul>
<p>While the optimism around the first-ever spot exchange-traded funds (ETFs) in the U.S. is reaching a fever pitch, <a href="https://ambcrypto.com/search/bitcoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a> has another strong bullish narrative to look forward to in 2024.</p>
<p>No prizes for guessing — it’s the upcoming <a href="https://bitcoinblockhalf.com/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">halving event</a> due in April. The quadrennial occurrence cuts miners’ block rewards by half, eliminating the number of tokens in circulation, and potentially driving up demand for the reduced supply.</p>
<h4>Halvings have proven to be bullish occurrences</h4>
<p>If history is anything to go by, these occurrences did precede periods of high returns.&nbsp; A CryptoQuant analyst drew attention to the various periods in history during which Bitcoin’s price was heavily impacted by the cyclical event.</p>
<p>Not going too far back, the king coin surged 1263% between the halvings of 2016 and 2020. Before that, Bitcoin witnessed an increase of 5187% during the 2012-2016 phase.</p>
<div id="attachment_362577" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-halving.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362577" decoding="async" class="size-full wp-image-362577" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-halving.jpg" alt="" width="820" height="360" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-halving.jpg 820w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-halving-300x132.jpg 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Bitcoin-halving-768x337.jpg 768w" sizes="(max-width: 820px) 100vw, 820px"></a>
 <p id="caption-attachment-362577" class="wp-caption-text">Source: CryptoQuant</p>
</div>
<p>Another important takeaway from these historical numbers was how much Bitcoin increased from its halving to its succeeding peaks.</p>
<p>From the period between the last halving in 2020 to its all-time high (ATH) in November 2021, Bitcoin grew by 654%. Similarly, between 2016 and 2017’s peak, Bitcoin rose 2922%.</p>
<p>After observing these trends, the analyst said,</p>
<blockquote>
 <p>“It can be said that halving events act as a catalyst for price increases both before and after the event.”</p>
</blockquote>
<p>Meanwhile, there were other indicators that represented investors’ bullish sentiment surrounding the halving event.</p>
<h4>Investors accumulate in the run-up to halving</h4>
<p>A popular crypto analyst Kashif Raza revealed that investors were holding on to more Bitcoin than what was getting freshly mined in a month. He noted that such a development was unusual and hadn’t happened much in the past.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">Investors got more Bitcoin than mined in a month, the first time since December.</p>
 <p>This tells us a lot about how people are using and holding onto their Bitcoin.<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;">.. <a href="https://t.co/nzK6TWUFde" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/nzK6TWUFde</a></p>
 <p>— Kashif Raza (@simplykashif) <a href="https://twitter.com/simplykashif/status/1744203611813614009?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 8, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>The stored supply exceeding the new issuance in a pre-halving environment reflected a shift in their strategy — a strategy that had probably much to do with Bitcoin becoming scarce and tough to purchase back once sold.</p>
<p>But as it stands, the pivotal element is still more than three months away. The immediate point of focus for Bitcoin and the broader crypto market remained the yet-to-be-approved ETFs.</p>
<p>Market observers and ETF issuers in the U.S. <a href="https://ambcrypto.com/bitcoin-spot-etf-blackrock-expects-approval-on-this-date/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">pinned their hopes</a> on Wednesday as the day of the watershed event.</p>
<p style="text-align: center;">How much are&nbsp;<a href="https://ambcrypto.com/convert/1-btc-to-usd" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">1,10,100 BTCs worth today</a>?</p>
<h4>Are the general public in the U.S. excited?</h4>
<p>But while institutional interest in the U.S. in Bitcoin ETFs was peaking, individual investors weren’t too excited.</p>
<p>According to a study by crypto market tracker <a href="https://www.coingecko.com/research/publications/interest-in-bitcoin-etfs?utm_campaign=Data%2BVisualization&amp;utm_medium=social" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">CoinGecko</a>, the U.S. stood 12th among countries most interested in Bitcoin ETFs. In fact, U.S. interest was less than half of first-ranked Luxembourg’s interest.</p>
<div id="attachment_362600" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CoinGecko.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362600" decoding="async" class="size-full wp-image-362600" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CoinGecko.jpg" alt="" width="453" height="513" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CoinGecko.jpg 453w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/CoinGecko-265x300.jpg 265w" sizes="(max-width: 453px) 100vw, 453px"></a>
 <p id="caption-attachment-362600" class="wp-caption-text">Source: CoinGecko</p>
</div>
<p>This is an intriguing development, as the U.S. ETFs have the ability to change how crypto is viewed globally. Such less interest could be a cause for alarm, but as of now, it’s too early to say anything just yet.</p>

Bitcoin spot ETFs are exciting, but don’t forget the halving

AMBCrypto

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