Should You Buy Bitcoin Before or After Halving?

SHORT ANSWER: Investors may choose to buy Bitcoin before or after halving, depending on prevailing trends and their personal investment strategies. 

Bitcoin has been on a tear this year, currently hovering around $70,000, with a $1.39 trillion market cap. After forging a new all-time high (ATH) at $73,738 on March 14, 2024, Bitcoin has maintained a price of around $70,000. Two key factors contribute to Bitcoin’s performance: institutional capital flowing into the asset through Bitcoin exchange-traded funds (ETFs) released in January and the upcoming halving that decreases the rate at which new BTCs enter the circulating supply, enhancing scarcity. 

Bitcoin is hailed as the king of cryptocurrency and is a popular vehicle among investors to hedge against inflation. How? With Bitcoin’s total supply capped at 21 million tokens, BTC supply and demand components are similar to gold, a deflationary asset. However, only 19.67 million BTCs are currently in the market. Why? Every 210,000 blocks, the rewards given to miners for verifying transactions on the network are cut in half. Halvings occur roughly every four years, controlling the BTC supply by reducing the quantity of mining rewards. This mechanism helps perpetuate scarcity. The underlying utility of the Bitcoin network as a decentralized peer-to-peer payment network and its functionality as a store of value make it an attractive asset. 

Will Bitcoin Go Up or Down After Halving? 

Below is a chart that measures Bitcoin’s price a year before and after each halving, providing insight into past price action, although past performance is not a guarantee of future success. Bitcoin is a deflationary asset like gold, so the price tends to jump when the supply slows down or is reduced. Each previous time, Bitcoin showed bullish growth in the year leading up to halvings. After a year, growth continued in these instances, with moderate pullbacks and reaching new ATHs. While the future remains unpredictable, Bitcoin has gone up after halvings. With the slow supply of new BTCs and institutional money entering Bitcoin, the price could increase after the April halving. 

Is It Better to Buy Bitcoin Before or After It Halves? 

While cryptocurrency is a volatile asset, larger coins like BTC and ETH have more history, which can be used to analyze trends. There have been three previous halvings; on average, Bitcoin has grown by 181.3% in the year preceding the date. With the fourth halving expected in April 2024, BTC has grown from an average price of $28,857.57 last April to $70,000 in March 2024 – 142% growth. Given previous data, Bitcoin could run up before the upcoming halving in April. In the year following each halving, Bitcoin's average growth is 2,970%, with the first, second and third years after halving returning 8,069% + 284% + 559%. 

How to Capitalize on the Bitcoin Halving 

• Following the money can be a great way to maximize your investments, and the influx of investment into Bitcoin could be a compelling trend. 
• With numerous Bitcoin ETFs on the market, Bitcoin and the entire crypto market are gaining huge exposure. 
• Historically, Bitcoin has performed superbly before and after halvings. 
• Renowned investors like Robert Kiyosaki and Cathy Wood are bullish on Bitcoin, among other experts. Kiyosaki believes BTC will be worth over $300,000 by the end of the year, and Wood projects it'll be worth $1.5 million in 2030. Check out our Bitcoin price prediction here. 
• Bitcoin is a scarce asset with real-world use cases.
• Timing the market is impossible.   
• If you need some help purchasing Bitcoin, check out Benzinga’s guide here. 

Are We in a Digital Gold Rush? 

As the fourth Bitcoin halving approaches, the stage is set for a potential surge in value. With the release of Bitcoin slowing down and limiting supply combined, Bitcoin has consistently demonstrated its value and resilience as an asset. Investors note its scarcity and its function as a store of value, leading many to call it digital gold.

While the crypto market is highly volatile, Bitcoin’s track record and value proposition have led to consistent long-term growth. Many experts and renowned investors are bullish on Bitcoin’s future price expressing that people can’t stay on the sidelines much longer. With inflation running rampant and centralized control over financial instruments, Bitcoin holds many solutions to big problems. 

Historically, with each halving cycle, Bitcoin has made new ATHs. The key to capitalizing on this digital gold rush is to consider if it fits your risk tolerance to invest in it. Like any investment, there are inherent risks. Doing your research before making any investment decision will allow you to make an informed decision you feel comfortable with.