AEArticles (4)
Decoding Bitcoin Halvings: A Historical Look at Price Patterns
<p paraeid="{be5484a1-04bf-49d6-9422-2c52efe2209d}{207}" paraid="521337786">The Bitcoin Halving event is a scheduled protocol that occurs every 4 years in the Bitcoin blockchain system that cuts a miner’s rewards by half, effectively controlling the supply inflation. </p> <p paraeid="{be5484a1-04bf-49d6-9422-2c52efe2209d}{217}" paraid="1738663072">The first three Bitcoin Halving events had a significant impact on the cryptocurrency market’s history. If you’re looking to trade the 2024 Bitcoin Halving event, it’s crucial to look at historical data and identify any similar patterns. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>Halving Event</td> <td>Date</td> <td>Block Reward Before Halving</td> <td>Block Reward After Halving</td> </tr> <tr> <td>1st Halving</td> <td>November 2012</td> <td>50 BTC</td> <td>25 BTC</td> </tr> <tr> <td>2nd Halving</td> <td>July 2016</td> <td>25 BTC</td> <td>12.5 BTC</td> </tr> <tr> <td>3rd Halving</td> <td>May 2020</td> <td>12.5 BTC</td> <td>6.25 BTC</td> </tr> </tbody> </table> <p paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{134}" paraid="2060973884">Here, we’ve outlined the historical price movements of Bitcoin. We’ll be looking at the average closing price of BTC 3 months before and after the Halving event. </p> <p paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{160}" paraid="1748032745">All data is from StatMuse. </p> <h2 paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{170}" paraid="1354479776">First Halving (November 2012) </h2> <p paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{180}" paraid="1722657036">Leading up to the first Halving, Bitcoin's price saw gradual increases. In the months that followed, the price experienced significant growth, marking the beginning of a prolonged bullish phase. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>August 2012</td> <td>September 2012</td> <td>October 2012</td> <td>November 2012</td> <td>December 2012</td> <td>January 2013</td> <td>February 2013</td> </tr> <tr> <td>$10.91</td> <td>$12.36</td> <td>$11.77</td> <td>$12.45</td> <td>$13.33</td> <td>$15.38</td> <td>$25.58</td> </tr> <tr> </tr> </tbody> </table> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{43}" paraid="930690934">The initial Halving event set a precedent for how Bitcoin's price could respond to reduced block rewards. In the short term, volatility was evident, with price fluctuations leading up to and immediately following the Halving. </p> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{69}" paraid="2110744758">However, the long-term effect was a substantial increase in Bitcoin's price. This trend was attributed to the reduced rate of new Bitcoin entering the market, creating a scarcity that, alongside growing awareness and adoption of Bitcoin, drove prices up significantly over the following year. </p> <h2 paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{79}" paraid="1374391257">Second Halving (July 2016) </h2> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{93}" paraid="161665470">The period before the second Halving was characterised by steady growth. Post-Halving, the price initially remained stable before embarking on a notable upward trajectory, eventually leading to unprecedented highs in late 2017. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>April 2016</td> <td>May 2016</td> <td>June 2016</td> <td>July 2016</td> <td>August 2016</td> <td>September 2016</td> <td>October 2016</td> </tr> <tr> <td>$448.32</td> <td>$461.95</td> <td>$642.87</td> <td>$661.36</td> <td>$579.59</td> <td>$605.85</td> <td>$700.97</td> </tr> <tr> </tr> </tbody> </table> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{219}" paraid="800232351">Similar to the first, the second Halving event was followed by a period of short-term volatility. However, the long-term trend was overwhelmingly positive. The year following the Halving saw a remarkable bull run, culminating in a then-all-time high towards the end of 2017 ($4,006.03). </p> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{231}" paraid="1433194142">This surge was fueled by increased investor interest, the growing utility of Bitcoin, and broader market speculation. </p> <h2 paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{237}" paraid="254152464">Third Halving (May 2020) </h2> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{251}" paraid="648731874">Prior to the third Halving, Bitcoin's price was recovering from a market downturn, presumably due to the COVID lockdowns. Following the Halving, the price stabilised and then surged, contributing to a bull market that peaked in early 2021. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>February 2020</td> <td>March 2020</td> <td>April 2020</td> <td>May 2020</td> <td>June 2020</td> <td>July 2020</td> <td>August 2020</td> </tr> <tr> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,501.01</td> <td>$11,653.75</td> </tr> <tr> </tr> </tbody> </table> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{134}" paraid="894512290">The most recent Halving event occurred during a year marked by global economic uncertainty caused by the COVID-19 virus. Despite initial concerns, Bitcoin's price not only remained stable but also began a significant upward trend in the months following the Halving. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{148}" paraid="851095680">This growth continued into 2021, reaching new all-time highs, with BTC peaking at $69k. The third Halving solidified the notion that such events are a precursor to bullish market cycles for Bitcoin, driven by a combination of scarcity and increasing demand. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{156}" paraid="795444340">These analyses highlight a pattern of increasing interest and investment in Bitcoin around Halving events, often resulting in significant price movements. Market sentiment and investor behaviour play critical roles in shaping the price movements of Bitcoin around Halving events. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{184}" paraid="1273263002">Each Halving has been accompanied by a mix of speculative anticipation and strategic investment, influencing short-term volatility and long-term price trends. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{194}" paraid="1905781713">In conclusion, the last three Halving events have demonstrated a pattern of volatility followed by a long-term bullish trend. It’s essential that traders looking to follow the Bitcoin Halving event do extensive market research before opening short or long positions. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{210}" paraid="438273659">Trade the 2024 Bitcoin Halving Event with a safe and secure broker now. Experience 24/7 trading, instant execution, and high leverage. Portal.thinkmarkets.com </p>
Beyond Bitcoin: Trading Altcoins During the BTC Halving Event
<p>The Bitcoin Halving is a momentous event in the world of cryptocurrencies. Occurring every four years, it reduces the reward for mining Bitcoin transactions by half in an effort to control the supply of BTC. This mimics the scarcity-driven value preservation similar to precious metals such as gold and silver.<br /> <br /> The Halving event separates BTC from fiat currencies where central banks and governments can simply print more money and thus subject to inflationary pressure. The mechanism has been known to significantly influence the price of BTC as investors see long-term value in the coin. Learn more about what the Bitcoin Halving Event is here.<br /> <br /> However, the Bitcoin Halving event is not isolated on BTC charts. In the case of Ethereum, for instance, traders and investors have fixed ideas of how much one ETH should be worth against BTC. If BTC gains by X, then ETH also needs to gain by X amount.<br /> <br /> In this article, we’ll discuss the ripple effect of Bitcoin Halving among altcoins, such as Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Binance Coin (BNB).<br /> <br /> As Bitcoin is arguably the most popular cryptocurrency, it’s no wonder that all altcoins have strong ties to it. BTC price movements, such as dumps, regulations and br eaking news, have an influence on altcoins.</p> <h2>Bitcoin Halving event’s effect on Altcoins</h2> <p>The Halving event often triggers speculative activity. The reduced supply post-halving has historically led to price increases, drawing investor attention not only to Bitcoin, but also to altcoins as alternative investment opportunities.<br /> <br /> Bitcoin miners may also shift their attention towards more profitable altcoins as BTC decreases their rewards. This influx affects the mining dynamics, security, and transaction processing speed of an altcoin’s network, increasing its investor appeal and valuation.<br /> <br /> Lastly, the media coverage surrounding the Bitcoin Halving event increases the mass appeal of cryptocurrencies. The heightened public interest attracts new investors, some of which may prefer exploring altcoins over Bitcoin and expanding the cryptocurrency world’s general liquidity.<br /> <br /> Let’s look at the price movements of famous altcoins ETH, XRP, ADA, and BNB during the third Bitcoin Halving event.</p> <h2>Third Halving (May 2020)</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>Coin</td> <td>Feb 2020</td> <td>Mar 2020</td> <td>Apr 2020</td> <td>May 2020</td> <td>Jun 2020</td> <td>Jul 2020</td> <td>Aug 2020</td> </tr> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>ETH</td> <td>$217.43</td> <td>$132.80</td> <td>$206.18</td> <td>$231.69</td> <td>$225.59</td> <td>$346.38</td> <td>$434.06</td> </tr> <tr> <td>XRP</td> <td>$0.21150</td> <td>$0.21150</td> <td>$0.17530</td> <td>$0.25940</td> <td>$0.28110</td> <td>$0.24180</td> <td>$0.23780</td> </tr> <tr> <td>ADA</td> <td>$0.0471</td> <td>$0.0305</td> <td>$0.0474</td> <td>$0.0743</td> <td>$0.0832</td> <td>$0.1390</td> <td>$0.1224</td> </tr> <tr> <td>BNB</td> <td>$19.25</td> <td>$12.55</td> <td>$17.02</td> <td>$17.12</td> <td>$15.41</td> <td>$20.67</td> <td>$23.14</td> </tr> </tbody> </table> <h2>Ethereum (ETH) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>Coin</td> <td>Feb 2020</td> <td>Mar 2020</td> <td>Apr 2020</td> <td>May 2020</td> <td>Jun 2020</td> <td>Jul 2020</td> <td>Aug 2020</td> </tr> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>ETH</td> <td>$217.43</td> <td>$132.80</td> <td>$206.18</td> <td>$231.69</td> <td>$225.59</td> <td>$346.38</td> <td>$434.06</td> </tr> </tbody> </table> <p>Ethereum's price movements around the Bitcoin halving in May 2020 show a significant trend. Before the Halving, ETH experienced a dip in March 2020. It should be noted that this was a global phenomenon. Financial markets crashed due to the imposed lockdowns caused by COVID-19.<br /> <br /> However, as the Halving approached, ETH began to recover, with the price in April bouncing by a whopping 55.26%. Just three months after the Halving, ETH showed a substantial increase in value, averaging $434.06, an 87.35% climb.<br /> <br /> This price movement indicates that Ethereum is considered as a complementary asset to Bitcoin, with its own fundamentals but ultimately, still riding the wave of increased crypto valuation.</p> <h2>Ripple (XRP) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>XRP</td> <td>$0.21150</td> <td>$0.21150</td> <td>$0.17530</td> <td>$0.25940</td> <td>$0.28110</td> <td>$0.24180</td> <td>$0.23780</td> </tr> </tbody> </table> <p>Ripple (XRP) also suffered from the economic uncertainty caused by the COVID-19 lockdowns. There was a steady decrease in price from February to March. However, during the month of the Bitcoin Halving Event, XRP’s price surged by 47.97%, averaging $0.25940 in May.<br /> <br /> Following the event, XRP continued to experience moderate volatility, experiencing an uptick in June before declining in the months after. This pattern suggests that while XRP does react to Bitcoin's Halving event, it also operates under the influence of its own market dynamics and fundamentals.</p> <h2>Cardano (ADA) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>ADA</td> <td>$0.0471</td> <td>$0.0305</td> <td>$0.0474</td> <td>$0.0743</td> <td>$0.0832</td> <td>$0.1390</td> <td>$0.1224</td> </tr> </tbody> </table> <p>Cardano (ADA) had a positive response around the third Bitcoin Halving event. Before the event, ADA was relatively stable, averaging $0.0471 and $0.0474. However, in the immediate aftermath of the Halving, ADA’s price significantly jumped by 56.75%.<br /> <br /> ADA’s positive correlation with the Bitcoin Halving event continued in the following months, with ADA averaging $0.1224, a 158.23% jump just three months after. This strong performance could indicate increased investor confidence in alternative cryptocurrencies and a search for potential high-growth assets within the crypto space.</p> <h2>Binance Coin (BNB) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>BNB</td> <td>$19.25</td> <td>$12.55</td> <td>$17.02</td> <td>$17.12</td> <td>$15.41</td> <td>$20.67</td> <td>$23.14</td> </tr> </tbody> </table> <p>Binance Coin’s performance around the Bitcoin Halving event shows an interesting trend. BNB started strong with $19.25 in February before experiencing a market downturn in March. By April, it was in a recovery phase before dropping again in price after the Halving.<br /> <br /> However, two months after the Halving, there was a notable rise with July and August showcasing then all-time highs. This upward trajectory suggests that BNB, with its ties to the Binance exchange ecosystem, benefits from the increased trading activity and investor interest that often accompany Bitcoin halving events.<br /> <br /> The role of market sentiment cannot be understated, especially in the cryptocurrency industry. As Bitcoin's Halving generates media buzz and fosters discussions about scarcity and value, investor behaviour leans towards optimism.<br /> <br /> This sentiment is then mirrored in the altcoin markets, where investors, expecting a similar scarcity-induced appreciation, may turn their attention to altcoins like ETH, XRP, ADA, and BNB. The market historically witnesses a surge in trading volumes and, consequently, prices across a range of cryptocurrencies, as investors diversify their portfolios in search of gains.<br /> <br /> It is important, however, to note that while there is a correlation, it is not a direct causation. Altcoins are influenced by their own unique set of factors, and Bitcoin's halving is just one of them. Each altcoin has its unique ecosystem and fundamentals that play a significant role in its price determination. For instance, Ethereum's shift to Ethereum 2.0 and its proof-of-stake model is an intrinsic value proposition that can affect its price independently of Bitcoin's Halving events.<br /> <br /> Access a wide range of cryptocurrency coins when you sign up with ThinkMarkets. Conquer the market and identify trading opportunities with our advanced charting interface, powerful tools, and exclusive features now!</p>
Navigating the 2024 Halving: How to Trade Bitcoin's Big Event
<p paraeid="{5a322cb4-ebc8-4477-bc6a-908a3b9a4601}{227}" paraid="1424858045">As April 2024 approaches, the term Bitcoin Halving is gaining extra traction. Crypto traders and enthusiasts alike are waiting in bated breath for the Halving event’s impact not just on BTC’s price, but on altcoins as well. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{2}" paraid="2102964511">But what exactly is Bitcoin Halving and why is it important? In simple terms, it is an event hardcoded into Bitcoin’s blockchain protocol which reduces a miner’s rewards by half every four years. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{18}" paraid="608511683">This event adds a scarcity element into the cryptocurrency generating massive appeal and significantly affects the price of BTC. For more information on Bitcoin Halving, read our beginner’s guide here. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{24}" paraid="1312720657">Historically, the last three Bitcoin Halving events which happened in 2012, 2016, and 2020 have caused both short- and long-term volatility. Read here to get a comprehensive overview of BTC’s price during the first three Halvings. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{38}" paraid="1137844410">In this article, we’ll go through some insights on how to trade the 2024 Bitcoin Halving event. <br /> </p> <h2>Preparing for the 2024 Halving</h2> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{60}" paraid="50837725">As the 2024 Bitcoin Halving approaches, there is widespread anticipation for a bullish run. Diving into the historical data and examining how previous Halvings impacted the price of Bitcoin and other altcoins can help identify patterns. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{86}" paraid="406758674">Do you have a trading strategy in plan? Check out how they would’ve fared during the past Halving events using <a href="~/en/learn-to-trade/articles/traders-gym/" rel="noreferrer noopener" target="_blank">Traders’ Gym</a>, our backtesting tool, exclusively available on ThinkTrader Web. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{105}" paraid="302886376">Additionally, it’s crucial to keep an eye out for crucial developments within the Bitcoin ecosystem, such as changes in mining technology or regulatory updates. <br /> </p> <h2>Basic Tools and Indicators to Master before the Halving</h2> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{129}" paraid="873999985">Here are the basic tools and indicators that are essential for monitoring the crypto market. Achieving mastery of these tools will help you gain a basic understanding of how the market might move leading to and after the Bitcoing Halving event. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{145}" paraid="1227863675">With a ThinkTrader account, you get free access to TradingView’s powerful charting interface, equipped with advanced trading tools and features. <br /> </p> <ol role="list" start="1"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="1" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{155}" paraid="370002707">Price and Volume Charts <br /> </p> </li> </ol> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{166}" paraid="548849887">Visualise past and present price movements so you can identify patterns and trends. <br /> </p> <ol role="list" start="2"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="2" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{178}" paraid="707903167">Moving Averages (SMA and EMA) <br /> </p> </li> </ol> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{187}" paraid="816925228">Simple and Exponential Moving Averages can help smooth out price data over specific periods, i.e. before and after the halving, providing insights into the overall direction of the market. <br /> </p> <ol role="list" start="3"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="3" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{219}" paraid="797675934">Relative Strength Index (RSI) <br /> </p> </li> </ol> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{226}" paraid="1284535900">This momentum indicator can help identify whether BTC and other altcoins are overbought or oversold, offering clues on whether there’s an imminent price surge or downturn. </p> <h2 paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{226}" paraid="1284535900">Risk Mitigation During the Bitcoin Halving Event </h2> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{246}" paraid="1294906623">The Halving event can lead to high volatility in the cryptocurrency market. If you’re planning to trade cryptocurrencies, make sure you apply these risk management strategies: <br /> </p> <ol role="list" start="1"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="1" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{19}" paraid="627052113">Set take profit and stop loss orders <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{26}" paraid="51518790">The crypto market moves fast. Setting take profit and stop loss orders will help you to secure profits and/or avoid bigger-than-expected losses. TP and SL orders help you exit positions at a predetermined price level without you constantly having to monitor the charts. <br /> </p> <ol role="list" start="2"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="2" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{38}" paraid="117793369">Diversify your portfolio <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{45}" paraid="326773893">While the main focus of the Halving is on Bitcoin, diversifying your portfolio is always ideal. Try to explore altcoins such as ETH, XRP, ADA, or BNB. You can read our guide on how the Bitcoin Halving event affects altcoins here. <br /> </p> <ol role="list" start="3"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="3" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{59}" paraid="665018224">Use leverage cautiously <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{66}" paraid="2133792347">ThinkMarkets offers crypto traders leverage as high as 50:1. This can amplify gains but also lead to larger losses. It’s recommended that you open smaller positions, especially in highly volatile markets. <br /> </p> <ol role="list" start="4"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="4" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{84}" paraid="1701944390">Stay up to date <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{91}" paraid="739956552">When trading cryptocurrencies, it’s crucial to keep yourself updated with market news and developments. This can help provide insights into potential price movements and allow you to adjust your strategy accordingly. For example, governments and financial institutions accepting crypto can increase its appeal, thus causing a price surge. On the other hand, stricter regulations or outright banning of cryptocurrencies can lead to downturns. </p> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{117}" paraid="1451762027"> </p> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{121}" paraid="662450524">Trade the Bitcoin Halving event with ThinkMarkets to gain access to advanced trading tools, automatic risk management features, and the latest market news. </p>
What is the Bitcoin Halving Event?
<p>Bitcoin is arguably the most popular cryptocurrency in the world. News on this coin affects BTC’s price and sets forth a wave of price swings in other cryptocurrencies. That is why crypto traders are all waiting in baited anticipation for the Bitcoin Halving event.<br /> <br /> Occurring every 4 years, the Bitcoin Halving event is pivotal for Bitcoin’s network protocol and the entirety of the cryptocurrency market. In essence, the event reduces the reward given to Bitcoin miners for validating transactions on the blockchain. This reduction is hard coded into the Bitcoin protocol to ensure a predictable and controlled supply of BTC over time.<br /> <br /> The Bitcoin Halving, often called the heartbeat of the Bitcoin network, plays an important role in regulating the inflation rate of BTC. This controlled supply is what differentiates BTC from traditional fiat currencies, where central banks and governments can print more money should the need arise.<br /> <img alt="Picture1.png" src="/getmedia/e4681d7c-abe2-4766-97c5-ac66fcc6d1ae/Academy-Market-events-What-is-bitcoin-halving-event.webp" title="Picture1.png" /></p> <p>When Satoshi Nakamoto created BTC in 2009, he specified that the total supply of BTC would be capped at 21 million coins. To gradually introduce new Bitcoins into circulation and incentivise miners to secure the network, a reward system was implemented. Initially set at 50 bitcoins per block, this reward is halved approximately every four years, or after every 210,000 blocks mined.<br /> <br /> As a result, the issuance rate of new bitcoins decreases over time, leading to a gradual reduction in the rate of Bitcoin supply growth.</p> <h2>Impact of Bitcoin Halving Event</h2> <p>The scheduled Halving events have a direct impact on the Bitcoin supply. With each event, the number of new bitcoins that enter the market is effectively cut in half. This reduction mechanism adds value to Bitcoin as it is protected against inflation.<br /> <br /> Many investors use this coin as a hedge against inflation, citing its ability to preserve purchasing power over time. In addition to this, changes in the supply dynamics influence the price expectations and market sentiment, creating major price volatility leading up to and following each Halving event.<br /> <br /> The limited supply and scarcity of Bitcoin increases its investor appeal, bringing the price upwards.</p> <h2>Overview of Historical Bitcoin Halving Events</h2> <p>Since its inception, there have been three Bitcoin Halving events with the next scheduled around April 18-19, 2024:</p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <th>Date</th> <th>Pre-halving reward</th> <th>Post-halving reward</th> </tr> <tr> <td>November 2012</td> <td>50 bitcoins</td> <td>5 bitcoins</td> </tr> <tr> <td>July 2016</td> <td>25 bitcoins</td> <td>12.5 bitcoins</td> </tr> <tr> <td>May 2020</td> <td>12.5 bitcoins</td> <td>6.25 bitcoins</td> </tr> <tr> <td>April 2024</td> <td>6.25 bitcoins</td> <td>3.125 bitcoins</td> </tr> </tbody> </table> <p>Check out our article on the previous Bitcoin Halving events and the impact on the price of BTC here.<br /> <br /> Trade the 2024 Bitcoin Halving event with ThinkMarkets now. Access 50:1 leverage, market-leading tight spreads, and 24/7 client support team. Portal.thinkmarkets.com</p>