Bitwise: The Crypto Market is Underestimating BTC Halving Impact

Reading Time: < 1 minute

The Bitcoin halving is just a few days away on April 20, but according to Bitwise Asset Management, past price movements following this highly anticipated event have been disappointing.

In an April 16 post, Bitwise observed that the months after the past three halvings saw a drop in Bitcoin’s price, but the year following each halving saw a minimum of triple-digit percentage point gains.

For example, after the 2012 halving, Bitcoin only gained 9% in the following month, but saw a massive 8,839% increase over the next year. Similarly, after the 2016 halving, Bitcoin saw a 10% decrease in the month following, but then surged by 285% and reached its all-time high of $20,000 in 2017.

This trend continued in 2020, with a 6% increase in the month post-halving and a subsequent 548% jump in the year that followed.

Bitwise noted that this pattern suggests that the market takes into account the short-term impact of the halving, but underestimates the long-term impact.