Chart of the Day - Monday, April 22, 2024

🏆 Today’s Chart of the Day was shared by CoinMetrics (@coinmetrics).

• Bitcoin completed its fourth Halving over the weekend. It went into the weekend on thin ice, testing the prior cycle highs at $65k. However, it refused to break down.

• Bitcoin Halving is a form of monetary policy written into its code to occur every four years to control inflation. With each halving, the reward for mining each block is cut in half, ultimately limiting supply and driving prices higher over time.

• The chart compares the four Halving “epochs.” Bitcoin has historically surged in the first 1-2 years after the event. Rallies have become less spectacular with each successive Halving, but we’re still talking about triple-digit returns (or better).

The takeaway: The media treats Halving as a binary event or an overnight catalyst. In reality, the impact has been more gradual. Halving has created a well-defined cycle in the Crypto markets. Will history repeat? Or, is this time different?