The price of Bitcoin tends to move in four-year cycles. If we look back at each halving, we can see that the price of Bitcoin has risen significantly in the year following each halving event. Before the first halving in 2012, Bitcoin had a return of over 14,000%. After the first and second halvings, the price of Bitcoin rose by 5,100% and 1,200%, respectively, ultimately reaching an all-time high about 500 days after the halving. Today, before the fourth halving, as of April 15, we have witnessed a 664% appreciation, with BTC reaching an all-time high of $73,000 for the first time before a halving.
As the issuance rate decreases and 19.7 million of the 21 million supply cap have been mined, each new halving will have a smaller and smaller impact on the overall supply. Therefore, as Bitcoin approaches the upper limit of its limited supply, the importance of future halvings will gradually diminish.
