what is correlation between bitcoin halving and bullrun

[udayantha11]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

[1714830553]

1714830553

[mk4]

A bitcoin halving event will happen whether we like it or not because it's literally coded into the software since Bitcoin's inception. There doesn't need to be a 'reason' for the next halving to occur, besides Bitcoin reaching block 840,000 which is very likely to occur sometime in year 2024.

[pawanjain]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Let me keep it simple. A bitcoin halving occurs every 4 years and in every bitcoin halving the block reward decreases by 50%.
As bitcoin halving occurs the amount of bitcoins in circulation increases. This means that there are lesser amount of bitcoins left to be mined.
This in turn spikes up the bitcoin market since more number of people starts to accumulate as much bitcoins as they can.

[sunsilk]

Let me keep it simple. A bitcoin halving occurs every 4 years and in every bitcoin halving the block reward decreases by 50%.
As bitcoin halving occurs the amount of bitcoins in circulation increases. This means that there are lesser amount of bitcoins left to be mined.
This in turn spikes up the bitcoin market since more number of people starts to accumulate as much bitcoins as they can.

About the correlation of bitcoin halving and bull run, this is the explanation OP. Rewards decreases that miners get while difficulty increases and in return of that, the effect is to increase in price.

The law of supply and demand can be the other explanation for its correlation to bull run. And in other words, once halving occurs, getting bitcoin is getting harder and becoming more scarce.

[Leviathan.007]

After each 4 years the block reward decreases and the miners will get 50 percent less than before and this will decrease the bitcoin available supply provided by miners. Now if you check the supply and demand theory, you will understand after decreasing on the supply the price will rise that's why after each halving cycle, the price of bitcoin can hit a new ath. Plus, there will usually a positive atmosphere and in the bitcoin markets and people will bore more greedy because they saw the last haling and they will take lesson, here increasing the greed will be another reason for the price to rise.

[cr1776]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Let me keep it simple. A bitcoin halving occurs every 4 years and in every bitcoin halving the block reward decreases by 50%.
As bitcoin halving occurs the amount of bitcoins in circulation increases. This means that there are lesser amount of bitcoins left to be mined.
This in turn spikes up the bitcoin market since more number of people starts to accumulate as much bitcoins as they can.

The number of bitcoins in circulation can increase or decrease at any time, it does not depend on the halving.   With every block mined, the number of bitcoins left to be created decreases since it gets closer to the maximum. 

At a halving, the amount of new supply of bitcoins decreases by half.  It initially went from 50/block to 25, then 12.5, then to 6.25 etc.  This is the new supply of bitcoin created with every block.  So instead of their being ~7200 newly mined bitcoins/day (50 bitcoins/block*6 blocks/hour*24 hours/day), now it is ~900 (6.25*6*24).

Approximately 6-9 months after each of the previous halvings, the fiat price has increased.  Probably due to less new supply coming to market while demand increases (or at least remains constant).  Will it always happen?  Who knows.

[shield132]

Okay, I'll try my best to explain it in a good and understandable way:
The highest percentage of society loves cars and probably dreams to own Ferrari. At first, Ferrari wasn't worthy because was a new thing and people didn't know what it was or why would they use it but once they understand the pros and cons of this, they started to buy it. Price started to increase as more people started to buy our Ferrari. Day to day, Ferrari was becoming popular, years have passed and it conquered the media, news websites, etc. But the problem is that Ferrari is limited to 21 million while there are billions of people on earth. Every year, Ferrari production is 50% lessened. As time goes, more and more people want Ferrari but it's production decreases. Despite the fact that everyone wants it, the price has to rise in order to satisfy people. With value X, 100 from 100 people will be able to buy it but when we value it 100000X, then only tiny amount of people can buy it, for example 10 from 100. That's why halving causes bull run

[just_Alice]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

That's unlikely. It may have been the case in 2017, but not this time. The most recent halving was in May 2020, when the block reward dropped to 6.25. However, if we look at the Bitcoin price chart 2020-2021, it can be seen that the price was pretty much stable from May till mid-October. Only after that, the price started to increase drastically. The possible reason for that was PayPal's announcement about launching the service, allowing users to use cryptocurrency, and then there's been a series of events, that might've influenced the price. Anyhow, the halving happened far before the bull run, so it's unlikely it had a serious impact.

[Wilhelm]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Halving halves the supply. ATH is about a year after the halving every time.
Why? NFC

[TravelMug]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

It's the catalyst to an eventual bull run, because a halving makes reduces the amount of BTC out there, so more demand with less supply. So as far as basic economic law, there is an imbalance as more investors/speculators/ wanted to have more bitcoin but the supply is less.

That's why throughout bitcoin's history, after a halving we see a dramatic rise in the price. But you have to understand that it will take months and years after a halving to fully see the massive spike. It's not happening overnight.

[crzy]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Limited supply and a great hype from the market and whales, so that’s the start of the Bull run. Yes, the next halving will commence on 2024 and for sure, that will be the start of a new bull trend, this is inevitable and maybe we’re gonna hit $100k or beyond by that time, so i’ll buy every dip for now.

[Silberman]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

Halvings are just a reality of the bitcoin network, now why the halving is correlated to bull runs? And the answer is simple, the halving as the name implies half the rewards the miners get from mining each block and this in return reduces the supply they can put up for sale, as we know the price of an asset is dictated by the supply and the demand and if the demand remains the same but the supply available in exchanges goes down then the price goes up, it is a very simple process which is why it is relatively easy to predict, but even if the price does not go up immediately after the halving the price has a tendency to begin to do so after a few months of the event.

[GreatArkansas]

Bitcoin block halving is an event where the mining rewards will be lessened on every 210,000 blocks (approximately every 4 years). And I believe this is one of the solution for the inflation rate, limited supply.

If you will take closely at the chart below, the list of previous halvings was labeled and you see the price action on every after block halvings. I believe the block halving event on Bitcoin is really important, not only on Bitcoin itself but for sure on everyone, it kinda Bitcoin become popular on each block halving which the price is driven by the market, the demand.



Check more here: https://www.bitcoinblockhalf.com/

[TastyChillySauce00]

Bitcoin halving was hardcoded and surely will happen, however bullrun on the other hand could happen when halving occurs or not. If you're asking about the correlation of halving and bullrun I think it's because that sense of scarcity you got everytime halving occurs which means block reward for the miners decreases.
Most of people also expecting the price go up due to that sense of scarcity and when all people expecting the same thing and adds demand to the market, the bullrun happens. just my 2 cents though.

[FanEagle]

Bitcoin halving was hardcoded and surely will happen, however bullrun on the other hand could happen when halving occurs or not. If you're asking about the correlation of halving and bullrun I think it's because that sense of scarcity you got everytime halving occurs which means block reward for the miners decreases.
Most of people also expecting the price go up due to that sense of scarcity and when all people expecting the same thing and adds demand to the market, the bullrun happens. just my 2 cents though.

There is 100% correlation between them. When there is 1800 bitcoins in the market, and when you calculate the price of it right now that means there is 81 million dollars worth of bitcoin printed every day, not that all of them are sold on the market as soon as they are printed but that is the amount we need to have buyers in order to just break even every day, even if there are no miner selling theirs there is still bitcoin there, so we need those buyers ready anyway, or increase the price if they have to because in the end we will see those miners sell one day eventually.

This is why I think when that dropped to 900 bitcoins after the halving that became 40 million dollars gone every single day, how could that have no correlation? I believe that is going to be easy choice, we are going to definitely have that 100% guaranteed to be higher thanks to that money gone.

[pooya87]

There are 2 types of correlation between bitcoin block reward halving and the bitcoin bull runs:
But let me first clarify that bitcoin supply does NOT half, the number of new coins being produced per block is reduced by 50% (the production rate is halved).

1. Hyped up news
This is a rise that always happens before the halving because people get hyped up about the news of the upcoming halving and start buying bitcoin so price goes up. It usually happens about a month or two before the halving date and so far it runs out of steam and a drop follows during the halving itself (usually one day before).

2. The less sell pressure rise
But halving essentially means that every day there is less new coins entering circulation. For instance before previous halving every day 1800 new coins were created and now it is 900. Miners do have to sell to pay the bills and even if a small portion of them sell that is still 50% less coins entering circulation and putting sell pressure on the market every day. That means price has to rise (less supply + more demand => rising price).

[CryptopreneurBrainboss]

I need to know 2020 bitcoin havling happened then bull run commenced. so 2024 again so what is the reason behind bull run and bitcoin halving ?

You already have some perfect answer above but I just want to add some opinion, even without the halving that occurs every four years bitcoin still has a potential of raising due it it been over sold. Almost all bear market result in bitcoin been oversold therefore even without the halving hype there's every possiblity of it raising. But there's no doubt that the halving event does have its effect and it can be felt both before and after the event as explained above.

The correlation for me has to do with hype and the decrease in supply of coins circulating the market. The demand has always been there so when the supply decreasing the FOMO comes in. Everyone wants to get hold of the available coins in the market thereby pushing the price uppers as the selling aren't willing to let go of their coins cheap, the cycle just continue until fud comes in.

[STT]

Halving is not the cause but it surely helps as it reduces the supply.   The factor always under considered is the other side to the price equation which is not just Bitcoin but dollars, we have an excess supply of dollars just as Bitcoin reduces its supply.   Because dollar is the denominator or opposing factor to pricing it also makes it easier for price to rise; if we had the reverse condition and dollars became rarer in common supply it makes for harder progress in Bitcoin price as demand sharpens  vs dollar supply.  
   The bullrun occurs mostly when people come to expect further rises, at some point always it will reset and in a healthy way this is regularly occurring and so allowing further gains after some pullback.   So far thats been the case, Bitcoin may yet rise further still.

[OcTradism]

The total supply of bitcoin, the block halving schedule are publicly given in the white paper and it was well known by years. They are not new specifications of bitcoin but around (before and after) every block halving, news will be more focused about it. News hype the social media, the people will know more about bitcoin. The hype of news attract new people to invest, trade, and love bitcoin.

New institutes will join the bitcoin investment. As institutes with big capital, they will move their bitcoin from exchange accounts, wallets to their cold, non-custodial wallets. It creates another hype of news and make bitcoin looks more difficult to buy.

All hypes interact mutually and create a hype on the market. Price will rise from the hypes in the community.

Google Trends shows ‘Bitcoin’ searches at 2020 high as BTC tops $19.4K
https://trends.google.com/trends/explore?date=all&q=bitcoin (2013, 2017 and 2020). I think the all time high will appear in 2021.

[Fundamentals Of]

There is no strict rule that says the price will increase after the halving. It is all theoretical. But it has somehow created a pattern. Perhaps the basic explanation that since the regular entry of new supply is halved, the price must increase. That is assuming that there is at least the same amount of demand. So in the face of a decreasing supply and maintained or even increasing demand, the price should increase.

The 2020 price of Bitcoin before the halving was around 1/4th of its price months after the halving. That was several months after the halving but it all happened within 2020 only.