Bitwise, a leading crypto index fund management company, believes that the digital asset market often underestimates the long-term impact of Bitcoin halvings. Looking at the previous halvings in 2012, 2016, and 2020, BTC saw a 9% increase, a 10% drop, and a 6% increase in the first month, respectively. However, the price of Bitcoin experienced exponential growth in the year following each halving, with an 8,839% increase in 2012, a 285% increase in 2016, and a 548% increase in 2020.

Bitwise’s Chief Investment Officer, Matt Hougan, and senior crypto research analyst, Juan Leon, also observed that Bitcoin spot trading volumes have consistently grown in the year after each halving event. They suggest that while the market may consider the short-term impact of halvings, it often underestimates their long-term effect. The data indicates that halvings may contribute to price appreciation over time.

The upcoming halving date for Bitcoin is set for April 20th, according to NiceHash, a hash rate marketplace. At the time of writing, BTC is trading at $61,486, experiencing a decline of over 3% in the past 24 hours and more than 12% in the past week.

Please note that the opinions expressed in this article are not investment advice. Investors should conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. All transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor do they provide investment advice.