Understanding Bitcoin Halving Cycles

Bitcoin undergoes a "halving" event approximately every four years, where mining rewards are cut in half. Historically, these events have preceded significant bull markets, though with diminishing returns in each cycle. While the 2012 cycle saw over 9,000% gains, subsequent cycles showed progressively smaller returns, with the 2020 cycle achieving around 677% gains. This diminishing effect occurs because as Bitcoin's market cap grows, it requires increasingly larger capital inflows to achieve similar percentage gains. This tool analyzes these patterns, showing cycle durations, price increases, and projected ranges based on the diminishing returns principle.