April 28, 2024 🤔 may not mean much to someone unrelated to crypto, but it is an important date for someone who has somehow incorporated #Bitcoin into their life. It is the "Halving" date, which most people know about, but many do not.
Bitcoin's supply is limited through a mechanism that works via mining rewards and transaction fees. Bitcoin miners perform mathematical calculations to verify transactions and create blocks. Although it is not my area of deep expertise, observing the reactions after reaching the green zone in this #OnChain indicator that relates to supply and miner revenues, called "Puell Multiple," is not too difficult.
Miners who perform these transactions do not do them for free; they receive their gains in #Bitcoin, causing an increase in Bitcoin's supply. With the halving mechanism, mining rewards are halved at regular intervals.
This slows down the increase of Bitcoin's supply, resulting in a limited supply for the entire system. As you know, Bitcoin's supply is limited to 21 million. In summary, halving is the halving of Bitcoin miners' rewards. This happens every 210,000 blocks (approximately every four years). Thanks to the reward reduction, Bitcoin's supply increases at a slower pace, and it is expected that the price will also rise due to the limited supply. Let's look at the dates and outcomes of Bitcoin halvings:
✅ November 28, 2012 The reward dropped from 50 Bitcoin to 25 Bitcoin. The price rose by about 900% in a year.
✅ July 9, 2016: The reward dropped from 25 Bitcoin to 12.5 Bitcoin. The price rose by about 2800% in a year.
✅ May 11, 2020: The reward dropped from 12.5 Bitcoin to 6.25 Bitcoin. The price rose by about 1100% in a year.
2024: The fourth halving will reduce the reward from 6.25 Bitcoin to 3.125 Bitcoin. Price: ?
Here's the real question: What is the effect of the 2024 halving on #BTC's value?
Of course, many people now understand the relationship between these past rises that occurred every four years and market cycles. The dynamics of previous bullish runs were not the same as they are now. The decisions of the Federal Reserve, economic developments, and so on, were not as important as they are now. But that's no longer the case. In my trading and life philosophy, I prefer to stay away from what many people rely on, talk about, or observe from a different perspective and look for alternative results.
We call this "Probability hunting.
Schopenhauer said, "Talent hits a target no one else can hit, while genius hits a target no one else can see." This does not mean that we are geniuses or trying to be; it means that we are trying to see targets that others cannot see.
Although lines and candles are excellent guides for us,the subject was never solely related to lines and cannot be. Best regards.
