The Bitcoin environment is one of the best-known in the crypto world due to its resilience and ability to withstand internal and external changes. While BTC is still quite vulnerable to several different factors, it is far sturdier than altcoins, hence its nickname, “digital gold.” Over the past year, investors have witnessed the going recovering gradually and regaining its strength after the difficulties of 2022. Now, many are again looking into where to buy Bitcoin, anticipating the imminent bullish run set to take prices higher than they’ve ever been.
There are several reasons for this predicted growth. One is the halving, expected to occur sometime in April 2024. Historically, this movement has always come with price climbs in the month before the halving, and the trend continues for several months after, promoting continuous growth. If the investors can consolidate their gains, Bitcoin will likely continue to grow throughout 2024 and perhaps in 2025 and later.
Miners
The halving is a significant event for miners, as the changes directly affect their work and tasks. Every halving lowers rewards for miners by 50% so that for all validated transactions, the miners will receive only half of what they used to before. The halving happens after 210,000 blocks are completed, which has traditionally happened every four years. The halvings are expected to continue until sometime in 2140 when the 32nd halving will occur.
At that point, all the Bitcoin will have been mined, and investors will only have the existing supply available. This is meant to create scarcity for Bitcoin and increase engagement and, therefore, prices. So far, there have only been three halving events in BTC’s history: the first in 2012, the second in 2016, and the last in 2020. In the past, while investors could see price growth in the immediate weeks after a halving, it was only after about twelve months that the growth began to show.
Differences
Looking at historical trends to determine how things will unfold is a favored strategy for many investors. While the environment is typically known as changeable and unpredictable, with massive fluctuations making it impossible to make accurate estimations, investors have discovered that there are some patterns Bitcoin is more likely to follow. While nothing is set in stone, there are ways to make some rough predictions.
Yet, because the markets tend to change fast, you can never be certain what will happen next. In some cases, some analysts and users are convinced the situation will be different. The 2024 halving is one of them. It’s not just about the rewards for miners changing but mostly about the fact that more people are familiar with the crypto market now than in 2020.
It’s not just individual investors either. Institutions and companies have joined the marketplace, often as whale investors moving considerable amounts of capital and changing market fluctuations momentarily. Compared to almost four years ago, the BTC price is now four times higher than it was before the last halving. 2021 saw Bitcoin enter an incredible bull run that let it conquer an all-time high level that approached $70,000.
Although it is still not as mainstream as stocks, bonds, or real estate, it is better known than it used to be, mainly due to the business capital flowing in over the past few years. Therefore, miners, individual investors, and retail traders should pay attention to the changes in the BTC environment as more people are investing and building projects on it than ever before.
Previous Numbers
So, how much did the asset grow during the previous halvings? In 2012, Bitcoin was still in its beginner phase in the marketplace. Before the halving, it was a mere $12.35, a minimal number compared to the values investors see today. But one year later, after the halving had been completed, the coin was $964. That considerable change convinced many that Bitcoin was a resilient asset and that investing in it was indeed an excellent way to diversify an investment portfolio.
On July 9th, 2016, the second halving arrived. At that point, BTC was trading somewhat lower than its previous elevated levels in 2013 but was still holding on at $663. In 2017, the price reached $2,500, climbing to a 4-digit number for the first time and then consolidating there. May 11th, 2020, was the time of the third halving. Bitcoin was doing reasonably well for the time, positioned at $8,500. Twelve months later, it stood at over $69,000, a monumental change that went down in Bitcoin history.
While the 2024 and 2025 levels are, as of yet, nothing more but pure speculation, it’s important to remember that most analysts believe that Bitcoin is set to record a new all-time high very soon. It will likely happen sometime around 2025, but growth will likely continue until then. Some are sure this will be the most robust bull run in the BTC ecosystem until now. According to the most optimistic estimates, the levels might approach $80,000 or $100,000.
It might sound hyperbolic, but it wouldn’t be the first time that Bitcoin grows seemingly overnight and stuns all of its detractors. The possibility of approval for the ETF market will set the market skyrocketing even further, potentially flooding money into the environment like never before.
The Bottom Line
Bitcoin remains well-known for its volatility, and the market will continue to be relatively illiquid compared to other, more traditional assets. That means that pricing swings will continue to impact the environment. ETFs might help stabilize the environment or at least provide a firmer foothold from which the environment can evolve and develop.
The fact that retailers and companies are interested in BTC shows that the king of crypto has a bright future ahead. The smaller enterprises are likely to be more reluctant to adopt it given the damaging events of the past two years when several exchanges collapsed as part of high-profile legal cases. However, as the Bitcoin environment becomes sure of itself and well-established, it will also become safer, attracting more investors to join its ranks.
