Bitcoin (CRYPTO: BTC) hit a value of more than $100,000 last year, for the first time ever. Did the fourth Bitcoin halving event prove to be a positive catalyst for the cryptocurrency and its valuation? Or has its rapid rise in value had more to do with other factors?
Bitcoin’s big selling point is its scarcity. And every four years, the rewards of Bitcoin mining are halved. It’s bad news for miners, but it slows the rate at which new tokens enter circulation, thereby helping maintain Bitcoin’s scarcity.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Bitcoin’s value sometimes rises after a halving, prompting investors to buy the digital currency beforehand. But did that happen after the last halving event, which took place on April 19, 2024? Here’s a look at Bitcoin’s price in the months following the event.
Date
Bitcoin Value
% Change Since Halving
April 20, 2024
$64,994
n/a
May 20, 2024
$71,448
10%
June 20, 2024
$64,829
0%
July 20, 2024
$67,164
3%
Aug 20, 2024
$59,013
(9%)
Sep 20, 2024
$63,193
(3%)
Oct 20, 2024
$69,002
6%
Nov 20, 2024
$94,339
45%
Dec 20, 2024
$97,756
50%
Calculations by the author. Source: Yahoo! Finance.
While Bitcoin has risen since the halving event, the rise really began only after Donald Trump, who campaigned as a crypto-friendly president, won a second term.
Stocks and cryptocurrencies often move in relation to new developments in the market. And what happened in the past won’t necessarily happen again.
As usual, the 2024 Bitcoin halving event was planned and would have been priced into the digital currency’s valuation even before it happened. The scarcity was not new or unexpected, so investors shouldn’t have expected it to have an immediate impact on Bitcoin’s valuation, regardless of what may have happened in previous years.
The real catalyst behind the digital currency’s surge in value was due to something that wasn’t priced in — the election win of a president who was looking at loosening restrictions in the crypto world, and even setting up a bitcoin reserve.
Bitcoin has hit record highs in recent months, but that doesn’t mean it’s destined to continue going up in value. This is a speculative investment, and favorable policies from President Trump may lead to greater use and acceptance of the digital currency, but there’s no way of knowing.
Story Continues
