Bitcoin Breaks Historical Trend with All-Time High Ahead of Halving

According to Blockworks, Bitcoin has broken its historical trend by reaching an all-time high ahead of its upcoming halving. Historically, every Bitcoin halving has come a year or two before a new all-time high. This is partly because a halving reduces the block reward paid to miners, making Bitcoin more scarce. The three previous Bitcoin halvings occurred in the run-up to an all-time high, which then gave way to a price drawdown until the next halving helped ignite another rally. For the first time in its history, Bitcoin set an all-time price high in the immediate run-up to the halving when it topped $70,000 this month. Blockworks examined how Bitcoin's price responded to prior halvings. The first halving in November 2012 saw Bitcoin's price jump from around $12 to $229 by April 2013, and then to roughly $1,132 by November 2013. After the second halving in July 2016, Bitcoin's price gradually rose for a few months before picking up momentum in May 2017, hitting a new high of roughly $19,188 in December 2017. By the third halving in May 2020, Bitcoin's price rose from around $8,500 to over $40,000 by January 2021, and then topped $63,000 in April before peaking above $67,000 in November 2021. With the next halving in April 2024, it remains to be seen whether the trend of price runs following halvings will continue, as the circumstances are noticeably different this time around. Bitcoin's ongoing bull run to an all-time high above $73,000 is uncharted territory for halvings, which previously came with Bitcoin's price far below its prior peak.