Bitcoin is below in front of the halvingact now for under $63,000 per coin according to a big sale over the weekend.
But it's more important to pay attention to 2020 data, Bitfinex claims – showing that the largest cryptocurrency in existence still has room to run in this cycle.
That's according to a new report from the crypto exchange, which says investors should take a look at history to see what it is upcoming halving event will affect the price of the asset.
Over the weekend, rewards for Bitcoin miners will be halved, from 6.25 BTC to 3,125 BTC for each block they process. The price of Bitcoin has increased every four years following the cryptocurrency's code update.
And this time will be no different, the report says.
“More fundamental to Bitcoin price dynamics is this week's halving, which precipitates a significant increase in BTC leaving centralized exchanges and a decline to 18 months in the inactive supply of BTC that has not moved in over a year “low,” it said.
The report added that Bitcoin investors were already doing the same in 2020 after the halving – and just before the asset's price hit new highs in 2021.
“This pattern suggests we may be entering a similar phase of growth,” it said.
Simply put, long-term holders are moving their coins into cold storage in anticipation of a price increase, the report says.
After each halving event, the price of Bitcoin has increased – although not immediately. After the last halving, which took place on May 11, 2020, Bitcoin was valued at $8,500.
The next year, the coin experienced an uptrend and the largest digital coin reached $69,044 in November.
Edited by Andrew Hayward
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