Bitcoin Post-Halving Price Performance Is the Worst on Record. Why?

It was a year ago Bitcoin Had his four -yearly halving Event, which usually sends the price is increasing.

But although it is true that Bitcoin rose to a record high in the months after the last halving in April 2024, the percentage of peak has not long been as considerable as in previous cycles.

Data provider Kaiko told Decrypt That although the price of the largest currency has indeed increased, macro -economic factors have prevented it from making the same kind of profit.

In the report, Kaiko said that at recent levels the rises represented the “weakest post -rehabilitation performance in terms of percentage growth.”

After an increase in the past week, Bitcoin was around $ 95,000 on Friday, an increase of around 49% since the Halving. The past percentage of increases have been reached until well into three or four digits during the same time.

“One of the most important changes [with this Bitcoin cycle] Is the current macro regime – the interest rates have never been so high, “said Kaiko senior analyst Dessislava Aubert DecryptAdding that “the current period of high uncertainty” has damaged the performance of the coin.

Bitcoin has generally performed well in an environment with a low interest rate, together with other risk-to-assets such as shares. But they are swimming in the midst of investors that US President Donald Trump’s host warDramatic cost-saving, and other macro-economic uncertainties would steer prices higher and stunt growth.

Bitcoin increased Up to a peak price of just under $ 109,000 on January 20, the day of Trump’s inauguration, because crypto markets expected that the policy of the new administration would help industry.

The halving takes place every four years and cuts block senses for miners-de powerful operations that process transactions on the network-in half. With fewer digital coins that the circulation introduces, investors and observers in the industry generally expect that it will actively increase.

A good example: before Bitcoin’s first halving in 2012 it was priced at $ 12.35. A year later, the price of the currency was $ 964, a profit of almost 8,000%.

At the next halving on July 9, 2016, Bitcoin Handels Handels was for $ 663. Fast-Forward to 2017 and it was advanced in value and was priced at $ 2,500-a rise of 277%.

And at the previous Halving, which took place on 11 May 2020, BTC was appreciated at $ 8,500. A bull run followed the following year and Bitcoin rose to an all -time high price above $ 69,000, an increase of 762%.

The Latter halve Cut miners rewards from 6.25 BTC to 3,125 BTC for each block they process. But Bitcoin’s price is hardly 50% higher than last year.

That has confused experts, who previously told Decrypt that halve – together with the historical approval of Spot Bitcoin ETFs Last January – would lead to a phenomenal run for the leading cryptocurrency. Although it has indeed increased and has achieved considerable dollar profits, the scale of the peak is impressed by industry observers.

Retail investors are not the only ones who are disappointed. The extremely difficult mining industry also suffers, with a lower BTC price, which means that companies are forced SPONTING COOTS More than before to cover operational costs.

Curtis Harris, senior director of Compass Mining Growth, noted that increased mining difficulties – fourth competition for smaller rewards – makes it more difficult for companies to survive in industry.

“Unlike earlier cycles, the Halving of April 2024 did not produce the explosive price growth that many miners had expected,” he said DecryptAlso adding that “the larger economic image” also made it difficult for space.

Trump’s Election win In November his subsequent inauguration led to a new high price of all time for Bitcoin. But the active has since fallen and only found partially recovered in the midst of investor fear of his irregular policy for trading rates and the economy.

“These increase the costs of borrowing, make miners more care and slow down the investments in new mining activities,” he added.

But compass mining chief mining officer Shanon squires told Decrypt That miners could have foreseen that the rally would be less lively than former post-destroying.

“Most have a stable profit if they optimize operating costs and run a good company,” Squires said. “Everyone who has built his mine farm that today expected $ 1 million Bitcoin did not pay attention.”

Published by Andrew Hayward