The worst performance of digital gold since the halving in April has “buried” the four-year cycle previously observed associated with this event, according to Ventures, The Block writes.
Experts urged investors not to count on the previously observed pattern. “The halving of the miner reward has no fundamental impact on Bitcoin and other digital assets,” the report says.
125 days after the halving in April, the first cryptocurrency lost about 8% in value. This contrasts with what was observed in previous periods over a similar distance. In particular, in 2012, Bitcoin rose in price by 739%, in 2016 - by 10%, in 2020 - by 22%.
Experts noted that since 2016, halving has lost its former fundamental significance due to the maturation of the asset. At the same time, its certain psychological impact on investors remains relevant.
According to researchers, miners' daily rewards are now equivalent to 0.17% of the turnover of the first cryptocurrency, while until mid-2017 this value varied from 1% to 5%.
Experts attributed the sharp growth in 2020 after the halving to the effect of the DeFi summer and active incentives in the context of the pandemic. In 2024, the digital gold rate updated the ATH to a halving of the miners' reward due to the influx of funds into the spot Bitcoin ETFs launched in January.
