already better than the full 2016 halving cycle

Bitcoin development: already better than the full 2016 halving cycle

Bitcoin has already outperformed the 2016 halving cycle in 2020, with a 2.2-fold increase.

Bitcoin (BTC) has more than doubled since the last halving of the block reward and has now overtaken the last bull run.

According to data from the on-chain monitoring website ChartsBTC on 23 November, Bitcoin is on track for significant price gains compared to its previous two halves in 2020.

Based on figures from Coin Metrics and statistician Clark Moody, the ChartsBTC Halving Index compares the progress of Bitcoin since it was halved over Bitcoin Union in May with the six months following halves in 2012 and 2016.

Here it becomes clear that Bitcoin is surpassing its run to the all-time high of $20,000 in 2017 in terms of price development. Only 2012 brought an even faster upward potential. At that time, the BTC/USD pair halved in value to just US$ 12.

Six months after being halved, Bitcoin has increased 2.2 times in 2020. In 2016, it was 1.3 times higher. In 2012, by contrast, it was 12 times higher in the same period.

Waiting strong increase

The data support the argument that Bitcoin in 2020 has little in common with the situation three years ago. Buyers have changed and are now corporate giants that meet customer demand. They are investing for the long term and not for speculative purposes.

For analyst PlanB, who developed the stock-to-flow model for Bitcoin, this is an all too clear catalyst for further price gains.

As Cointelegraph reported on Monday, he believes that much faster growth could begin in January 2021. This should be on a par with the previous two halves in terms of performance.

„Monday! Paypal, Grayscale and Square will continue to buy today,“ he said of the large-volume bulls.

Last week, a comparative chart of Bitcoin „halving candles“ put the year 2020 into perspective and showed how much potential there still is until the end of the current halving cycle in 2024.

Each candle caused the BTC/USD pair to rise to a price much higher than the last. The year 2024 should therefore bring a price of $100,000 if history repeats itself.

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