Bitcoin Price May Drop After Halving, Historical Data Shows

Bitcoin has again rallied sharply in the weeks leading up to its impending halving event. But if historic patterns are anything to go by, the cryptocurrency could suffer a temporary price pullback following the supply-altering event. 

The top cryptocurrency by market value has risen by over 130% since bottoming out at $3,867 on March 13 according to CoinDesk’s Bitcoin Price Index. The cryptocurrency jumped from $6,700 to $9,400 in the last 10 days of April alone. What’s more, prices gained over 15% last week to register bitcoin’s first seven-week winning streak in 12 months.

Notably, the big gains have happened in the weeks leading up to the mining reward halving, due on May 12, and are reminiscent of similar price rallies seen ahead of the previous two halvings, which took place in 2016 and 2012.

See also: Bitcoin Halving, Explained

The term “halving” refers to a programmed-in event in bitcoin’s code, which reduces the reward per block mined by 50% every four years to control…