The May 2020 Bitcoin (BTC) Halving Will Be The Most Dramatic Halving Yet, With $6.75 Million Of Selling Pressure Taken Off The Market Per Day Versus Only $1.17 Million Following The 2016 Halving

October 26, 2019 / by Crypto.IQ

The Bitcoin (BTC) block halving is coming in May 2020, specifically on May 13 according to one estimate. At that time the block reward for miners will drop from 12.5 Bitcoins (BTC) to 6.25 Bitcoins (BTC), which will put the squeeze on miners by decreasing mining profitability, while simultaneously reducing selling pressure on the market which will likely benefit HODLERS. 

In terms of Bitcoin (BTC) this is the smallest halving thus far, with only 6.25 Bitcoins (BTC) per block being removed, whereas the first halving in 2012 removed 25 Bitcoins (BTC) per block, and the halving in 2016 removed 12.5 Bitcoins (BTC) per block. 

However, due to the long term price rise of Bitcoin (BTC), which has seen the price of Bitcoin (BTC) rise by orders of magnitudes all the way from less than $0.01 to as much as $20,000, the May 2020 block halving looks to be the most significant halving ever in terms of US Dollars. 

When the first halving occurred on November 28 2012 the price of Bitcoin (BTC) was a mere $12, meaning that the removal of 25 Bitcoins (BTC) from the block reward reduced the value of each block reward by $300. This is $43,200 per day, $302,400 per week, and $15.768 million per year of selling pressure removed from the Bitcoin (BTC) market. 

Bitcoin (BTC) was worth roughly $650 on July 9 2016 when the 2nd halving occurred, 5,300% more than it was worth during the first block halving. 12.5 Bitcoins (BTC) were removed from each block, equivalent to $8,125 per block, $1.17 million per day, $35.1 million per month, and $427.05 million per year. This means that the 2nd halving had a far more significant impact on the market than the first halving, despite only 12.5 Bitcoins (BTC) being removed per block versus 25 Bitcoins (BTC) in the first halving. 

Now the price of Bitcoin (BTC) is around $7,500, which is 62,400% higher than during the first halving and 1,050% higher than during the 2nd halving. If the halving were to happen today the 6.25 Bitcoins (BTC) removed per block would be equivalent to $46,875 per block, $6.75 million per day, $202.5 million per week, and $10.53 billion per year. 

This means that this halving will be by far the most significant halving ever for the Bitcoin (BTC) market, with about 6 times more selling pressure being removed from the market than the 2016 halving. 

Of course the price of Bitcoin (BTC) will likely be different when the halving comes in May 2020, but it could be even higher considering the speculation caused by a halving, and if the Bitcoin (BTC) price were higher there would be an even bigger impact. 

Putting this in context, even though far less selling pressure was removed from the market during the previous two halvings, they still had a major impact on the price of Bitcoin (BTC). After the first halving the price of Bitcoin (BTC) eventually rallied to over $1,000 in late 2013, and after the 2nd halving the price of Bitcoin (BTC) eventually rallied to $20,000 in late 2017. 

In other words, the two biggest rallies in Bitcoin (BTC) history have followed the block halving by a year or two, which may be a response to the dramatic reduction in mining selling pressure on the market. 

In summary, in terms of US Dollars the upcoming May 2020 block halving looks to be the most dramatic by far, even though only 6.25 Bitcoins (BTC) are being removed from each block. Therefore, this seems like an optimal time to HODL Bitcoin (BTC).