BITCOIN HALVING AND THE BULL RUN
The halving of Bitcoin served as the primary catalyst for this bull run. Approximately every four years, or when 210,000 blocks have been mined, this occurrence occurs. The event is crucial because it is planned to reduce inflation by half by halving the block reward that miners earn.
Because Bitcoin is a decentralized digital currency and isn’t impacted by any decisions made by any central authority, it is crucial to understand how this influences the price of Bitcoin. Therefore, neither monetary nor fiscal policy can affect the supply and demand for bitcoin.
Actually, the primary element influencing pricing is the link between supply and demand. While the entire supply of BTC is fixed at 21 million, when the supply is halved, it is cut even further and mining becomes more expensive. Accordingly, the price of Bitcoin typically increases following a halving (given on the data we have so far). After the half of Bitcoin in May, its price increased to $9,999. The price would keep rising over the next period.
When Bitcoin’s price surpassed $18,000 in November, it set the first major record. The price continued to rise over the next few months, and in December it topped $20,000, setting a new record. This brings us to 2021, when the price of Bitcoin doubled and reached $40,000, while it reached $52,635 in February.
What Differentiates This Bull Run?
This bull cycle differs from past ones in that acquiring Bitcoin is now quite simple for institutional and ordinary investors alike because to the availability of internet trading platforms. You may easily open a Bitcoin account and visit Bitcoin Digital, which is a great trading platform.
The website is powered by AI, so the robot can swiftly react to new data and deliver consistent, reliable service. This also means that since this is an automated trading platform, you don’t need any special knowledge or skills to start trading. Furthermore, you can make up to $800 every day here.
The fact that institutional investors drive BTC demand and support Bitcoin is another factor making this bull cycle unique. The benefits of blockchain technology and cryptocurrencies are now being recognized by a growing number of enterprises, which has a favorable effect on market demand.
Past Bull Runs
You can see from previous bull runs that the price has increased and trended upward following a Bitcoin halving. Following the initial reduction in 2012, the price barely increased from $11 to $12. But roughly a year later, in November, the cost rose to $1,075. The price of Bitcoin rose from $576 to $650 as a result of the subsequent halving in 2016, setting off one of the most noteworthy bull runs in its history. After another year of steady growth, Bitcoin once more broke its previous high in December, reaching $17,000.
Although the price fell in 2018, this was a crucial time for the cryptocurrency since it signifies a period of low volatility and steady growth in 2019, when it topped $10,000 in June. As a result, the outlook is very promising because the cryptocurrency sector has developed and more businesses are becoming aware of the benefits of blockchain technology and cryptocurrencies