Bitcoin's journey since the first halving
The first-ever Bitcoin transaction took place nearly 15 years ago, marking the beginning of a new era in digital currencies. Bitcoin's founder, Satoshi Nakamoto, proposed in the BTC whitepaper a novel approach to the "monetary policy" challenges of digital currencies. In essence, he devised a system where miners' rewards are halved with every halving (from 50 to 25, then 25 to 12.5, 12.5 to 6.25, and most recently from 6.25 to 3.125 BTC), meaning that the issuance of new BTC into circulation will become progressively slower. The first halving was therefore a crucial step in combating Bitcoin inflation and maintaining the currency's scarcity, and subsequent halvings have only amplified this process.
The effect of halving on Bitcoin
Halvings have also played a key role in Bitcoin's history, significantly influencing its price. Each halving event in the past has led to a substantial increase in Bitcoin's value. Following the first halving, the price shot up to $127 within 150 days from $12, and later, BTC peaked over $1,000. The third halving in 2020 occurred when the price was $8,821, and it eventually soared to a high of $69,000.
As we approach the next halving, scheduled for April 2024, the crypto community is filled with optimism. Many forecasts suggest that BTC could set new all-time highs above $100,000 by the end of 2024 or in 2025. The scenario could be further influenced by the potential approval of a spot Bitcoin ETF, which many analysts view as a significant catalyst for a rise in BTC’s price.
The anniversary of Bitcoin's first halving brings an opportunity to reflect on historical milestones and future expectations of this pioneering cryptocurrency. How the market will evolve towards the next expected halving and what impact it will have on the global financial scene remains a subject of speculation and discussion in the crypto community.
How will this affect Bitcoin? Can we expect another phase of a Bull run?