There isn’t a single fixed rule that crypto always falls first after halving before rising, but here’s how it usually plays out:
Before halving (anticipation phase): Many traders and investors buy early because they expect the reduced supply to push prices higher later. This often causes a price increase before the halving.
Right after halving (cool-off phase): Sometimes the price drops or moves sideways. This happens because:
Traders who “bought the rumor” may sell to take profit (“sell the news”).
The market may need time to adjust to the new mining rewards and liquidity.
Months after halving (long-term effect): If demand stays the same or grows, the reduced new supply usually creates upward pressure. Historically, Bitcoin and some other coins surged months after halving, not immediately.
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There isn’t a single fixed rule that crypto always falls first after halving before rising, but here’s how it usually plays out:
Before halving (anticipation phase):
Many traders and investors buy early because they expect the reduced supply to push prices higher later. This often causes a price increase before the halving.
Right after halving (cool-off phase):
Sometimes the price drops or moves sideways. This happens because:
Traders who “bought the rumor” may sell to take profit (“sell the news”).
The market may need time to adjust to the new mining rewards and liquidity.
Months after halving (long-term effect):
If demand stays the same or grows, the reduced new supply usually creates upward pressure. Historically, Bitcoin and some other coins surged months after halving, not immediately.