RESEARCH: The Market Impacts of a Bitcoin Halving Explained

For more information about the bitcoin halving, download the free CoinDesk Research explainer report which features over 30 different charts and additional commentary from mining industry experts. “If price performance following the November 2012 and July 2016 halvings are any indicator, bitcoin’s price should increase significantly over the 10 to 12 month period following the [third] halving.” That’s Ciara Sun, head of global business and markets at cryptocurrency exchange Huobi. Speaking on the third podcast episode of “Bitcoin Halving 2020: Miner Perspectives,” Ciara was joined by Chief Financial Officer at Bitfarm, John Rim. The two shared their insights on the expected market impacts of bitcoin’s third halving event. Sun noted that many crypto investors are expecting a substantial bitcoin price increase in the months following the 50 percent reduction in bitcoin block subsidy rewards. However, Sun also caveated her statement saying the market dynamics leading up to May’s halving event are “more complicated” this time around due to global events such as the COVID-19 outbreak. No matter the impact on bitcoin’s market price, Rim affirmed that miner revenue per terahash would likely readjust and normalize to pre-halving levels as a result of mining difficulty adjustments. “The whole network relies on mining for the validation of transactions and for a self-incentivized system like bitcoin, you need miners to be profitable,” Rim said. To download or stream this episode, you can go to Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica or RSS. For early access to future episodes, be sure to click subscribe on these channels. Photo by Zbynek Burival on Unsplash See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.