Bitcoin investors are no strangers to a January downturn, particularly in the year following a halving event. History displays a consistent trend: Bitcoin often faces a significant drop at the start of a new year post-halving. For instance, in January 2021, Bitcoin saw a plunge of over 25% from above $40,000 to just over $30,000. The cryptocurrency then rallied to a remarkable $69,000 by November, a substantial 130% increase.
Fast forward to 2022, and Bitcoin’s value has dipped 10%, falling from its peak of $102,300 on January 7 to just below $92,000. While this might seem concerning to some, analysts such as Axel Bitblaze emphasize that such January drops have been routine during post-halving years, pointing out the trends followed after the 2017 and 2021 downturns.
Rewinding back to the January following the 2016 halving event, Bitcoin slipped 30%, moving from $1,130 to $784. This sharp drop was followed by a stunning 2,400% surge throughout that year, culminating in an all-time high of $20,000 by December.
Crypto analysts have observed a pattern where Bitcoin tends to dip in the first half of the month throughout the past year. However, crypto enthusiast Crypto Rover assures that the recent dip is minuscule compared to previous slumps. Predictions suggest that this cycle isn’t done, with even more growth anticipated in the coming months.
While the market trajectory of Bitcoin can be both unpredictable and intimidating, history shows us that such patterns are commonplace. Whether Bitcoin’s value could elevate to over $200,000 or plunge below $70,000 by the end of 2025 remains to be seen. But for now, Bitcoin followers need not worry — as history has shown us, everything tends to flip right side up for Bitcoin eventually.