The worst on record for Bitcoin’s post-hash cost performance is. Why?

One year has passed since Bitcoin‘s inaugural lowering event, which typically sends the price soaring.

However, the percentage increase has not been nearly as significant as in previous cycles, despite it being real that Bitcoin reached an all-time large in the months following the most recent halving in April 2024.

Although the price of the largest coin is indeed rising, according to data company Kaiko, economic factors have prevented it from achieving the same level of gains.

According to Kaiko, the recent increases represent the “weakest post-halving performance on record in terms of portion rise.”

Bitcoin was trading at$ 95,000 on Friday, up about 49 % from the previous week’s peak, which was up about$ 95,000. In the same time period, percent rises have soared well into the three or four numbers.

The current macro regime has never been this great, according to Kaiko Senior Analyst Dessislava Aubert, adding that” the current time of great doubt” has hurt the performance of the coin.” One of the main changes]with this Crypto cycle is ] the latest micro regime. &nbsp,

In addition to other risk-on assets like stocks, Bitcoin has generally performed well in a low-interest level setting. However, those fear that Donald Trump’s business war, significant cost cuts, and other economic uncertainty will raise prices and stymie growth, which has swooned those investors. &nbsp,

On January 20, the day of Trump’s inauguration, Bitcoin hit a maximum rate of only under$ 109, 000, as crypto industry predicted the new government’s plans would benefit the sector. &nbsp,

The decreasing cuts stop rewards for miners, the power-hungry operations that approach dealings on the network, by half and takes place every four years. Investors and business observers normally anticipate the asset to rise as fewer online coins are in circulation. &nbsp,

Consider the price of Bitcoin before it halved for the first time in 2012 at$ 12.35. The price of the coin increased by almost 8,000 % a year later to$ 964, or nearly 8 %. &nbsp,

On July 9, 2016, Bitcoin was trading arms for$ 663 at the next half-hour. Fast forward to 2017, and its value increased by 277 % to$ 2,500.

Additionally, at the previous halving, which occurred on May 11, 2020, BTC was valued at$ 8,500. The following year saw a bull run, and Bitcoin reached an all-time high above$ 69, 000, a 762 % increase.

The final lowering reduced workers ‘ rewards for each strip they process from 6.25 BTC to 3.125 BTC. However, Bitcoin’s rate is only slightly higher than it was last year.

Experts who recently told that the halving, along with the traditional acceptance of area Bitcoin ETFs in January, would result in a spectacular run for the leading cryptocurrency have confounded them. Although it has indeed increased and generated significant economic gains, industry observers have been largely unaware of the magnitude of the increase.

Not just retailers who are disappointed are the only ones. A lower BTC price means that businesses are being forced to sell off coins more frequently than before to cover operating costs, which is also a problem for the extraordinarily tough mining industry. &nbsp,

Curtis Harris, Compass Mining’s senior director of growth, noted that more mining difficulty—fierce competition for smaller rewards—is making it harder for businesses to survive in the sector.

According to him,” the April 2024 halving hasn’t delivered the explosive price growth that many miners anticipated,” he told . He added that” the bigger economic picture” was also making it difficult for the space. &nbsp,

Trump’s victory in the November election and subsequent inauguration resulted in a new record-breaking high price for Bitcoin. However, the asset has since fallen and only partially recovered as a result of investor concern over his inconsistent policies regarding trade tariffs and the economy. &nbsp,

These “raise the cost of borrowing, make miners more cautious, and slow down investment in new mining operations,” he continued.

However, Compass Mining’s Shanon Squires, the company’s chief mining officer, claimed miners could have anticipated the rally’s waned participation rate would be lower than it had been since the halving. &nbsp,

If they optimize operating costs and conduct a successful business, the majority of them will make a steady profit, Squires said. ” Anyone who constructed their mining farm without paying attention was not expecting$ 1 million in Bitcoin today.”

edited by Andrew Hayward