Bitcoin plummets after each halving

Bitcoin usually plummets after halving, due to profit realization, speculation, psychological factors and market manipulation. The duration of the plunge varies from halving to halving and can last from days to months. Investors can take steps to prepare for a plunge, such as: investing for the long term, finding buying entry points, and waiting patiently.

Bitcoin’s plunge after each halving

Bitcoin halving is a scheduled event that changes the Bitcoin area Block rewards are halved. It is designed to control the supply of Bitcoin and lead to a potential increase in the price of Bitcoin. However, historical data shows that Bitcoin is usually followed by a sharp drop after a halving.

Reasons for the plunge

• Profit realization: Miners usually sell Bitcoin after halving to cover costs.
• Speculation: Speculators may buy Bitcoin before the halving and sell it with expected profits after the halving.
• Psychological factors: The price increase after the halving will attract new investors, but they will also panic sell when the price corrects.
• Market Manipulation: Large investors can take advantage of market fluctuations to manipulate prices and make profits.

Duration of the Plunge

The duration of the Bitcoin plunge after the halving varies from halving to halving. It may last days, weeks or even months.

Examples of post-halving crashes

• 2012: After the first halving, Bitcoin price was at 2 It fell from $15 to $7 during the month.
• 2016: After the second halving, Bitcoin price fell from $1,160 to $300 in 7 months.
• 2020: After the third halving, Bitcoin price fell from $12,000 to $8,000 in 3 months.

Countermeasures

In order to cope with the collapse of Bitcoin after the halving, investors can take the following measures:

• Long-term investment: The plunge after the halving is usually temporary. Long-term investors can hold onto Bitcoin until the price rebounds.
• Purchase entry point: During the plunge, look for buying opportunities to acquire Bitcoin at a lower price.
• Wait patiently: Don’t panic sell. Be patient and wait for prices to recover and don't sell at a loss.

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