How does Bitcoin halving impact the BTC price?

How does Bitcoin halving impact the BTC price?

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Bitcoin halving is a programmed event occurring roughly every four years, where the reward miners receive for adding new blocks is cut in half. This event reduces the rate at which new BTC enters circulation, effectively lowering supply growth. Historically, Bitcoin halvings have had a significant influence on the BTC price.

The reduced supply, combined with sustained or increasing demand, creates a scarcity effect that often drives the price upward over time. Past halvings in 2012, 2016, and 2020 were followed by substantial bull runs, although the price increase may not be immediate and can take months to materialize fully.

Market anticipation of the halving event often results in increased buying pressure beforehand, sometimes causing price rallies. After the halving, volatility can spike as the market digests the new supply dynamics.

Investors tracking these cyclical events find it helpful to monitor live data like the current BTC price to time entries and exits more strategically.

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