3. Just two days before the bitcoin half; Severe volatility levels also reached the cryptocurrency market, and therefore Bitcoin dropped by 20% in a few hours.
Similar price developments were seen two days before the second half, in July 2016, when BTC fell 11%.
Similar Developments in 2016 are Experiencing
Today, the leading cryptocurrency and most altcoins on the market have seen a sudden drop. After the recent fluctuation and over $ 10,000 psychological level, Bitcoin fell below $ 8,000 on some exchanges.
Still, after this 20% drop, the price of the digital asset has recovered slightly and is currently trading at $ 8,712 as of writing this news.
Just 2 days later, this year’s most anticipated event is planned to happen. In addition to reducing half of the miners’ rewards for their efforts, the Bitcoin split is also a catalyst for strong price developments.
Looking at historical data, the digital asset had experienced a similar situation almost 4 years ago. BTC had increased by more than 70% in the previous weeks until the second half of July 9, 2016.
However, 2 days before the event, Bitcoin fell 11% on July 7.
It is worth noting that on the day of the 2nd half, the price of BTC fell again from $ 663 to $ 625.
Looking at the Big Picture
Despite the short-term adverse price effects in Bitcoin, macro data show that the leading cryptocurrency has increased following the 2016 and actually 2012 halves.
Before the first half in November 2012, BTC was trading at about $ 12. However, the following year, the asset grew more than 90 times to jump to $ 1,180.
As noted above, Bitcoin entered the 2nd half around $ 660. The bull run following it, however, was one of the most impressive bull runs. BTC initially jumped to $ 2,800 in July 2017 and reached its all-time high in December 2017, about $ 20,000.
Although historical data are not a valid price indicator for future events, similarities are now forced to be observed, as the third half is very small. If the price of the asset increases in the following months, as in the previous two halves; The question of whether it will repeat itself at the end of history is worth considering.