Top managers of Bitwise believe that traders are often overly focused on the short-term effect of Bitcoin halving, when they need to look at the longer term.

Bitwise Chief Investment Officer Matt Hougan and Senior Cryptocurrency Analyst Juan Leon examined historical data on Bitcoin halvings. It turned out that in 2012, 2016 and 2020, in the first month after the halving, the Bitcoin rate grew by 9%, fell by 10% and grew by 6%, respectively. However, over a one-year period, the growth for all halvings was 8,839%, 285% and 548%, respectively. Spot trading volumes also grew every year after the reward to miners was halved.

“Of course, we have limited data. We work only on three historical examples. However, the picture that emerges is very intuitive and suggests that in the short term after halving, prices do not change much, but many underestimate the long-term effect,” write Bitwise analysts.

Late last year, Bitwise analysts predicted that BTC would exceed $80,000 in 2024.