Bitcoin Halving Cycles Could Increase Its Value to $130,000, Says Analyst

Bitcoin miners rush to capitalize on surging values before the impending halving, driving a spike in computing power as halving looms.

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Plan B, a well-known crypto analyst, has pointed out that traders who take advantage of the Bitcoin halving cycles have a greater chance of profiting than investors who buy and keep.

The Bitcoin price has increased significantly around each of the three prior halvings, as the seasoned trader pointed out. However, geopolitical upheaval may also drive the bull run, as BitMEX creator Arthur Hayes pointed out.

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How to Turn $5 into $130,000 using the Bitcoin Halving Event

Cryptocurrency market participants around the time of the Bitcoin halving events alone may have seen returns of up to 2,500%.

“Being in the market only in these three [Bitcoin halving] periods and out during the rest would have increased a $5 investment to $130,000 (purple line) instead of $37,000 buy and hold (blue line),” Plan B, a renowned analyst, said.

The Bitcoin halving, which happens every four years on average, causes significant price increases since the pace of new BTC issuance drops by half. Smart investors might take advantage of the current shortage by buying Bitcoin at a discount.

According to Plan B’s Stock-to-Flow model, traders should acquire Bitcoin six months before the halving and sell 18 months after. The goal of this strategy is to take advantage of Bitcoin’s cyclical nature, allowing you to profit from the large price surge that occurred just before Bitcoin halving and avoid the ensuing lousy market.

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Bitcoin’s Success in Uncertain Geopolitical Environments

In addition, BitMEX’s creator, Arthur Hayes, has proposed that crypto traders may choose to purchase BTC amid times of global unrest and conflict.

Hayes claims that Bitcoin’s performance during wars like the ones between Ukraine and Russia and between Hamas and Israel has been superior to those of more conventional investments like long-term US Treasury bonds. Since the beginning of the conflict in Palestine, BTC’s price has climbed by 26%, while TLT, the long-term US Treasury bond ETF, has gained by just 3%.

“The smartest trade is going long crypto. Hayes claims that “crypto is the only asset that has outperformed the growth in central bank balance sheets.”

Arthur Hayes, BitMEX co-founder

Hayes also said that the recent price of Bitcoin demonstrated that it may be used as a hedge against the risks posed by global conflicts. As a result, BTC has shown to be an effective barometer of the stability of the conventional banking system in times of crisis.

Bitcoin has a better track record than bonds in times of conflict. “Even if there was a weak phase at the start, I will buy dips,” Hayes said.

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