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Bitcoin after the 2024 halving: rally, retrace, and what is different this cycle

BTC's fourth halving was April 2024. The 12 months after followed the historical playbook — then diverged. Spot ETFs, options-implied vol, and on-chain holder behaviour all changed the shape of this cycle.

EV
Elena Volkov
Crypto desk
10 min read

The fourth Bitcoin halving cut the per-block subsidy from 6.25 to 3.125 BTC in April 2024. The previous three halvings (2012, 2016, 2020) were each followed by a 12–18 month rally that peaked roughly 8x to 20x above the halving-day price. This time the rally is more compressed, the retracements are sharper, and the buyers are different.

Spot ETFs changed the marginal buyer

January 2024's US spot ETF approvals brought a new buyer cohort to the market with a different cost basis and a different sell trigger. Aggregate ETF holdings now run in the 1.0–1.3 million BTC range and concentrate the buy-side flow into business hours, with implications for intraday seasonality. The ETF cohort also rebalances on quarter-ends, which prints visible flow patterns missing in prior cycles.

What looks the same

  • Long-term holder supply behaviour — addresses sitting on >155-day-old coins still dominate the on-chain supply distribution.
  • Mining economics — hash-price compression after the halving forced the marginal miner out, same pattern as 2016 and 2020.
  • Realized volatility regime — still 3–4x equity volatility, similar to the prior cycle's mid-phase.

What looks different

  • Options-market depth — open interest on listed BTC options is several times the size of the previous cycle peak, with the term structure regularly inverting.
  • Correlation profile — BTC's rolling correlation with NASDAQ tech has been more sensitive to Fed-policy expectations and less sensitive to ETH or other alts.
  • Drawdown shape — 20%+ pullbacks have happened faster, often resolving in days instead of weeks.
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