Sometime ago I mentioned about Crypto investing but never got time to start a post about it. Though I still feel not ready to come with full analysis. But I see a major event coming soon i.e. Bitcoin Halving event, and thought of coming with a quick post, out to my viewers.
Bitcoin’s (BTC) big “halving” event that’s less than three weeks out.
Even for seasoned crypto investors, it’s worth reiterating why the halving is so important.
It’s the catalyst that could send bitcoin beyond $100,000, and then $150,000… and smaller cryptos soaring with it.
I understand when people are against bitcoin/ crypto. It’s not tangible. It’s too expensive etc. But I can’t understand investors who keep writing off bitcoin as a “fad.”
Bitcoin has been the best-performing asset in the world over almost the last decade.
It’s been the best asset for the last year. And for the last five years. And for the last 10 years. Over the last decade, it’s up 200X more than gold and 75X more than the S&P 500:
Remember bitcoin is a form of money that can be held, exchanged, spent, and tracked in any quantity without needing anyone’s permission. No banks, no Wall Street, no government, no vaults needed.
Bitcoin halving:
Bitcoin jumped 8,000% after the first halving… almost 30X in the year following the second one… and it handed out 6X gains after the most recent halving four years ago.
Here’s a great way to visualize bitcoin’s predictable moves. It shows BTC’s price appreciation from the bottom ahead of each halving.
The orange line represents the current cycle. Right on schedule:
Source: Galaxy Research
Each prior bitcoin halving was enough to push BTC prices up at least 500%. Today, at the same time new bitcoin supply is about to be cut in half… a new source of demand is soaking up tens of millions of dollars of bitcoin every day. Bitcoin ETFs, which debuted in January, are buying an average of 4,500 BTC/day. Only 900 new bitcoins are minted each day. This supply/demand mismatch was enough to push bitcoin from $45,000 in January to $70,000. And the impending bitcoin halving will cut the issuance of new BTC in half, from 900 to 450 per day.
What will happen when demand keeps climbing AND new supply is cut by 50%?
Bottom line: Each of the three crypto booms—2012/13, 2016/17, and 2020/21—have happened around a bitcoin halving.
We’re once again entering what is typically the best time to own crypto.
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