The Bitcoin Halving Is Coming. Prepare for All-Time Highs

Bitcoin doesn’t have a long-standing price history like the major stock-market indexes do. However, there may be enough historical data to suggest that Bitcoin is about to catapult much higher.

The Bitcoin price is about to test $63,000 as I’m writing this, though of course that’s subject to change at any given moment with a volatile asset. The previous BTC-USD peak occurred in 2021 at around $69,000.

Interest is growing in Bitcoin now, but that’s typical when the price makes a sharp move to the upside. Employing a strategy of buying Bitcoin whenever it dipped 30%, 40%, or 50% would have consistently provided excellent returns since 2009.

It might be a while before the next dip occurs, though. Currently, the cryptocurrency market is red-hot as the Securities and Exchange Commission (SEC) finally relented and approved spot Bitcoin ETFs.

It’s interesting that this took place just a few months before the upcoming Bitcoin halving/halvening event. That’s when the reward for mining Bitcoin is cut in half, in order to limit the available, circulating supply of Bitcoins.

Halving events don’t alter the fact that there will ever only be 21 million Bitcoins. Until those Bitcoins are all mined, halvings are scheduled to happen after every 210,000 blocks are mined; this occurs roughly every four years.

Courtesy: @open4profit

Admittedly, there isn’t a large sample size of prior Bitcoin halving events. So far, though, history tends to suggest that BTC-USD recovers swiftly from corrections after halving events.

It’s debatable, though, whether Bitcoin is in a correction anymore. It’s not very far below its all-time high, so there’s a good probability that Bitcoin will hit fresh highs before the April halving event.

I wouldn’t conclude from all of this that the SEC’s spot Bitcoin approvals “ruined” the Bitcoin halving cycle. Rather, I’d say that Bitcoin traders and investors need to make some adjustments.

Remember, the halving events weren’t put in place for you to make money. The idea is to curtail the available supply so that Bitcoin doesn’t end up like so many debased fiat currencies.

Still, there’s nothing wrong with anticipating the next halving event. The problem is that the market is highly efficient, and cryptocurrency traders aren’t just going to wait for a known, upcoming event to happen.

Courtesy: @webdollarfans

Very few financial assets have regularly scheduled, highly bullish events like Bitcoin does. The demand for Bitcoin, especially from institutional investors, is increasing. Meanwhile, the halving events practically guarantee that the circulating Bitcoin supply will be kept under control.

Personally, I’m not trying to time my Bitcoin entries around halving events. For me, “time in the markets” is more important than “timing the markets.”

In other words, an attitude adjustment may be necessary for some traders. People who overtrade tend to underperform people who understand the true value proposition on an asset and just “set it and forget it.”

Sure, it’s possible that the efficient market has already priced in the upcoming April halving event. The spot Bitcoin ETF approvals may have caused this to happen sooner than it otherwise would have.

None of this should affect a sensible investor’s overarching strategy. The halving events are positive, not as buying signals but as a supply-control mechanism. If you’re on board with this concept, feel free to own some Bitcoin for the long haul, and not just because you’re trying to “play the cycles.”