Bitcoin has seen a remarkable rally this year, with a 70% increase year-to-date and a 160% rise over the past 12 months. This follows the bear market, often referred to as the “crypto winter,” that started in early 2022. As of March, Bitcoin hit a new high, surpassing $73,000. This is a significant increase of over 350% from its bear market lows, and the upward trend shows no signs of stopping.
Crypto enthusiasts are now focusing on the main event for this month: the halving. This is a process where the daily mining rate of Bitcoin will decrease from 900 to 450. Crypto expert Chris Campbell predicts that the halving will occur at block height 840,000, a term referring to the number of blocks linked in the blockchain. The estimation is that the halving will occur between April 18 to 22.
The halving will result in a reduced new supply of Bitcoin. Meanwhile, demand is projected to increase as the bull run continues. While the previous three halving events resulted in a significant increase in price, this doesn’t necessarily guarantee a similar outcome this time. However, the fact that Bitcoin has been constructively consolidating over the last month and is now approaching the top of its range is a positive indication of the ongoing rally.
However, some investors might be concerned about how Bitcoin will respond to significant news events such as the halving. For instance, in January, the SEC approved the first US-listed Bitcoin ETFs. This resulted in a substantial $10,000-plus drop in Bitcoin’s value that took two weeks to recover. Despite this, Bitcoin recovered quickly, finding a base near $40K and hitting new highs by mid-February.
As we approach the halving, it’s crucial to remember that Bitcoin is in the midst of a strong bull cycle. It has recently hit new highs after emerging from a bear market. We are likely not at the end of this secular bull run just yet.
Furthermore, the faster the rally, the more volatility we are likely to experience. It’s vital to understand your timeframe and goals for any trade before you enter your position. Good planning can help you navigate any potential turbulence along the way.
Finally, don’t let a sudden reaction to news events catch you by surprise. Rapid market shifts occur as markets quickly assimilate new information. Stay vigilant and be aware that there may be some false moves, both upwards and downwards, before Bitcoin settles into its “new normal.”
In conclusion, hold on tight and enjoy the journey! This massive Bitcoin rally is far from over.
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