There is less than a year until the Bitcoin Halving, one of the most important events in the world of cryptocurrencies.

But...

What is a bitcoin halving?

A Bitcoin halving occurs when the profit from mining new blocks is reduced by half, meaning that miners receive 50% fewer bitcoins for verifying transactions. Bitcoin halvings occur every 210,000 blocks (approximately every four years), and will occur until the network has generated a maximum supply of 21 million bitcoins (19,390,306 BTC currently in circulation).

This event is very important, because as there is less supply of the cryptocurrency, it could cause the price to rise if demand for it remains high. The increase in prices usually occurs in the months before and after the halving.

THE LAST HALVING

The most recent bitcoin halving took place on May 11, 2020, causing the block reward to drop from 12.5 to 6.25 bitcoins.

On that date, Bitcoin was worth around $9,079 and just a year and a half later it was worth +668% more, reaching around $69,758.

SOMETHING TO TAKE INTO ACCOUNT

Having information about past halvings we can see that the increase in the price of Bitcoin is proportionally smaller with each event that has passed. Many studies say that since there is a more finite and limited amount of Bitcoin due to the halving, its behavior tends to be less volatile over time.

So a simple 200% increase at current prices could put us at more than $84,400 per BTC.

MY POINT OF VIEW

It is not so important to know how much Bitcoin will reach in the next Halving, but rather that we understand what it is, how it works and what happened in previous times. The best strategy from my point of view would be DCA in the current zone, with small weekly purchases, this way we are buying the low part of the pre-halving BTC price. And we don't try to guess a perfect buy price at the bottom and then sell it at a perfect post-halving top price (something impossible for 99.99% of investors).

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