Bitcoin's Predictable Halving Events Drive Price Frenzy Every 4 Years
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The Bitcoin halving reduces the supply issuance by half every 4 years. The next halving is in April 2024.
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The halving is guaranteed to happen due to Bitcoin's immutable code. It cuts inflation rate from 1.8% to 0.9% in 2024.
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Bitcoin has a perfectly inelastic supply that does not expand even if price rises rapidly.
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The halving impacts the Bitcoin price equilibrium. If demand stays equal, price must rise to balance reduced supply.
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The psychology around the predictable halving events creates speculative hype that often becomes a self-fulfilling prophecy of price increases.