An Empirical Examination of Bitcoin’s Halving Effects: Assessing Cryptocurrency Sustainability within the Landscape of Financial Technologies

Juraj Fabus, Iveta Kremenova, Natalia Stalmasekova and Terezia Kvasnicova-Galovicova ()
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Juraj Fabus: Department of Communications, Faculty of Operations and Economics of Transport and Communications, University of Zilina, 01026 Zilina, Slovakia
Iveta Kremenova: Department of Communications, Faculty of Operations and Economics of Transport and Communications, University of Zilina, 01026 Zilina, Slovakia
Natalia Stalmasekova: Department of Communications, Faculty of Operations and Economics of Transport and Communications, University of Zilina, 01026 Zilina, Slovakia
Terezia Kvasnicova-Galovicova: Department of Communications, Faculty of Operations and Economics of Transport and Communications, University of Zilina, 01026 Zilina, Slovakia

JRFM, 2024, vol. 17, issue 6, 1-23

Abstract: This article explores the significance of Bitcoin halving events within the cryptocurrency ecosystem and their impact on market dynamics. While the existing literature addresses the periods before and after Bitcoin halving, as well as financial bubbles, there is an absence of forecasting regarding Bitcoin price in the time after halving. To address this gap and provide predictions of Bitcoin price development, we conducted a rigorous analysis of past halving events in 2012, 2016, and 2020, focusing on Bitcoin price behaviour before and after each occurrence. What interests us is not only the change in the price level of Bitcoins (top and bottom), but also when this turn occurs. Through synthesizing data and trends from previous events, this article aims to uncover patterns and insights that illuminate the impact of Bitcoin halving on market dynamics and sustainability, movement of the price level, the peaks reached, and price troughs. Our approach involved employing methods such as RSI, MACD, and regression analysis. We looked for the relationship between the price of Bitcoin (top and bottom) and the number of days after the halving. We have uncovered a mathematical model, according to which the next peak will be reached 19 months (in November 2025) and the trough 31 months after Bitcoin halving 2024 (in November 2026). Looking towards the future, this study estimates predictions and expectations for the upcoming Bitcoin halving. These discoveries significantly enhance our understanding of Bitcoin’s trajectory and its implications for the finance cryptocurrency market. By offering novel insights into cryptocurrency market dynamics, this study contributes to advancing knowledge in the field and provides valuable information for cryptocurrency markets, investors, and stakeholders.

Keywords: Bitcoin; cryptocurrency; Bitcoin halving; cryptocurrency sustainability; Bitcoin price dynamics; digital assets; trading view; market behaviour (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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