#Bitcoin’s Next Halving Rally: Coming Soon in 2019
2012 and 2016: What do they both have in common?
Bitcoin underwent what is referred to as the “halving,” where the yearly bitcoin inflation was algorithmically reduced by 50 percent. This is part of bitcoin’s deflationary monetary policy and why Austrian economists refer to bitcoin as “hard money.”
If you look at the bitcoin price chart, you will notice that these two years have one more thing in common. The bitcoin price increased significantly the year leading up to the halving. Furthermore, the rally leading up to the halving was in both cases followed by a brutal parabolic move just a few weeks after the halving. With the next bitcoin halving expected to happen in May 2020, the time has come for investors to start paying attention to this pattern. Historically, the halving starts getting priced in approximately one year before it happens, which would result in bitcoin bottoming out in early 2019 followed by a rally starting in May 2019. But what if this time is different? It won’t be, let’s explore why.
Bitcoin (BTC) is down 1.89% over the past 24 hours and is currently trading at $3,796.47 on Coinbase. BTC dominance is at 51.9% and the total cryptocurrency market cap is currently at $127.7 Billion.