Is This Bitcoin Halving Strategy Indeed the Most Profitable?
Warning: This article may not be for the die-hard Bitcoin HODLer.
Upon designing what has later become the world’s largest blockchain network, Satoshi Nakamoto decided to incorporate an event happening approximately every four years to set a certain inflation rate for the creation of new BTC.
The so-called halving slashes in half the rewards miners receive for their work on the network, which, in theory, should mean an increasing price for the underlying asset if the demand remains the same or increases.
With BTC’s next halving right around the corner, one analyst has outlined a particularly simple but possibly quite profitable strategy for those who want to speculate on Bitcoin’s price movements in regard to each cycle.
History shows that Bitcoin’s price indeed heads north in the months after each halving. Whether that’s hype or people are actually purchasing more while the production rate has slowed down is still uncertain. However, every new low is higher than the previous cycle’s bottom, which leans more toward the latter.
Mags, a popular crypto analyst on X, has outlined a strategy that people could employ if they want to make a (not-so) quick buck by taking advantage of these cycles.
What's Your Reaction?
