Bitcoin Volatility Increases Ahead of Halving: Trading BTC with Negative Fees on Huobi HTX Could Be a Better Bottom-Fishing Option
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Bitcoin Volatility Increases Ahead of Halving: Trading BTC with Negative Fees on Huobi HTX Could Be a Better Bottom-Fishing Option
Historically, as supply tightens and demand remains stable or grows, Bitcoin's price reaches new highs some time after the halving.
Navigating Web3 tides with focused insightsJust one day remains until Bitcoin's fourth halving, when the block reward will drop to 3.125 BTC.
Bitcoin Halving and Historical Bottom Patterns
As is well known, the Bitcoin halving is a pre-programmed event embedded in the Bitcoin protocol that cuts the mining reward for new blocks in half. Looking back, since its inception in 2009, Bitcoin has undergone three halvings. The first occurred in November 2012, reducing the block reward from 50 BTC to 25 BTC. The second halving took place in July 2016, further cutting the reward to 12.5 BTC. In May 2020, Bitcoin experienced its third halving, reducing the mining reward to 6.25 BTC.
Market participants often view Bitcoin halvings as precursors to bull markets, as they reduce the rate at which new bitcoins are issued, effectively slowing the influx of new supply into the market. Historically, with supply tightening while demand remains steady or grows, Bitcoin prices have tended to reach new highs some time after each halving.
According to a report by crypto investment firm 21Shares, Bitcoin has performed exceptionally well in the 12 months following each halving. On average, Bitcoin takes about 172 days post-halving to surpass its previous all-time high (ATH), and an additional 308 days after that to reach the peak of the new cycle.
Unlike the previous three halvings, as Bitcoin approaches its next halving, subtle shifts in market structure and participant behavior reveal a more complex trading landscape. The approval of spot Bitcoin ETFs has introduced new institutional demand and capital inflows into the Bitcoin network, causing BTC to break through the prior cycle’s ATH even before the halving occurs.
High Volatility: A Prime Opportunity to Accumulate
However, just before this halving, the market was hit by an unexpected sharp downturn. From April 12 to 14, worsening geopolitical tensions and fading expectations of Federal Reserve rate cuts intensified risk-off sentiment across the crypto markets.
Data from Coingecko showed that the total cryptocurrency market cap briefly dropped below $2.5 trillion, with BTC falling below $61,000, ETH under $2,800, and SOL dipping below $120. Altcoins saw even sharper corrections—popular tokens such as MATIC, XRP, DOGE, and BCH declined more than 30%, while the once-popular meme coin BOME plunged over 50% at its lowest point.
Despite current market uncertainty, many investors and analysts remain optimistic about the long-term outlook for cryptocurrencies. They believe this price correction may offer a prime entry opportunity for long-term investors.
Matrixport stated in its latest report that some believe we may be on the verge of an altcoin rally. Although certain meme coins and altcoins have already seen significant rebounds, Bitcoin's dominance suggests that a broader-based rally is still in its early stages—indicating a narrow bull market where Bitcoin continues to capture an increasing share of market value.
Renowned trader GCR posted on social media: “If you’ve been sidelined, this is a great chance to add to positions in tokens you truly believe in. If you’re already fully invested, stay strong and hold your spot holdings—don’t give up. As someone once said, liquidations forcibly transfer wealth from leveraged traders to wealthy spot buyers.”
Fierce Competition: Choosing the Right Platform and Tools Is Crucial
Worth considering is that as Bitcoin gains wider recognition and adoption, competition among cryptocurrency exchanges has intensified. Selecting the optimal platform and financial tools from the vast array available has become a key challenge for investors. In this context, Huobi HTX, with 10 years of secure operational experience and having weathered two previous Bitcoin halvings, stands out as a solid choice. Moreover, its introduction of negative-fee Bitcoin trading offers a valuable advantage in this tightening era.
Trade-to-mine is an exclusive benefit offered by Huobi HTX. By trading designated cryptocurrencies, users can share in corresponding prize pools. Additionally, the net trading fees generated from these pairs are used entirely for $HTX buybacks, which are then 100% burned to support the stable growth of $HTX’s value.
Currently, Huobi HTX periodically launches trade-to-mine campaigns for BTC/USDT spot and futures trading, open to all users. To participate in spot trade-to-mine, users must have a rocket score above 300 and successfully register on the event page. For futures trade-to-mine, users need at least 10 USDT in their futures account (excluding demo funds) and must click the “Register Now” button. Participants in either campaign can enjoy negative trading fees and compete for a daily prize pool of up to 200,000 USDT.
Indeed, every Bitcoin halving marks a fundamental shift in the crypto industry, profoundly influencing adoption and market evolution. Beyond direct impacts on price and investor sentiment, Bitcoin halvings drive increased interest and participation from both institutions and retail investors. As a key player and witness to this transformation, Huobi HTX will continue exploring broader applications of cryptocurrency and providing users with secure, diversified financial tools to enhance trading experiences, as we collectively enter Bitcoin’s and the crypto market’s next cycle.
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