Summary
TLDR: With the Bitcoin halving approaching, investors are looking at historical patterns that show price corrections before the halving followed by significant market rallies. The past halving events in 2012, 2016, and 2020 have led to substantial price surges, with potential for a 4X increase in Bitcoin price by October 2025. Strategic trading models like Plan B’s Stock-to-Flow Trading Rule suggest buying six months before the halving and selling 18 months after to capitalize on Bitcoin’s cyclical behavior.
Key Points
1. The Bitcoin halving historically signals the start of a new bull market, with pre-halving price corrections often leading to significant rallies post-halving.
2. Following past halving events in 2012, 2016, and 2020, Bitcoin witnessed impressive surges ranging from 700% to 11,000%, indicating the profound impact halvings have on market dynamics.
3. Plan B’s “Stock-to-Flow Trading Rule” advocates for strategic purchases six months before the halving and sales 18 months after, leveraging predictable cyclical behavior in Bitcoin prices and potentially leading to a 4X increase in price in the current cycle.