So lately, there has been more posts on the bear market than the bull market and yeah, it does feels like we need more of bear market talks to help many of us understand the current situation we're in, jow to cope with it, the right things to do and how to make the best of the situation. However in one of my recent posts, I talked about how I felt we've reached the market's bottom already at $17k and why I believe the bull run might have just started but not yet obvious.
Well, I also do talk about the Bitcoin Halving which is a quadrennial event (every four years) where the mining of rewards of Bitcoin is cut in half. The next Bitcoin halving is scheduled for May 2024 and that's about 2 years from now, so what is the actual effect of this event on Bitcoin and what is its correlation to the Bull Market?
The Bitcoin Halving ultimately reduces the supply of Bitcoin while there is an obvious increase in demands when considering the rapidly growing crypto industry. According to economics, when there's a decrease in supply of a product than its demand, there's a rise in price of that product and in the case of the bull market, everyone tries to keep what they've got and when fewer people are willing to sell the cryptos, the prices go "BOOM".
This is one of the easiest and simplest part of economics that exhibits itself in the crypto market and why I have the opinion that Bitcoin Halving has one of the biggest effect on the crypto market and is a key factor that marks the bull market.
