Historically, Bitcoin's price tends to rise following halvings, but the fourth halving has only resulted in a 43% increase, significantly lower than previous halvings due to external economic pressures.

The recent Bitcoin halving in April 2024 cut miner block rewards from 6.25 BTC to 3.125 BTC, resulting in a reduced inflation rate of 0.83%, which is below the Federal Reserve's target of 2%.

The approval of spot-traded Bitcoin ETFs by the SEC in January 2024 has enhanced Bitcoin's legitimacy in institutional circles, leading to increased acceptance and capital inflows.

Despite a slump in retail participation, long-term institutional investors are expected to absorb any sell-off pressures, helping to sustain upward momentum in the market.

Bitcoin's unique characteristics, including its programmed scarcity and connection to physical assets, position it as a viable alternative to traditional debt-based monetary systems.

After reaching an all-time high of $109,000 on January 20, 2025, Bitcoin experienced a decline to $76,000 by April 9 due to global tariff concerns, but is currently trading around $106,000.

Massive government spending and budget deficits nearing $2 trillion in 2024 have contributed to the dollar's devaluation, prompting increased interest in Bitcoin as a hedge against inflation.

However, for Bitcoin to fully capitalize on its potential as a hedge against monetary debasement, there is a pressing need for enhanced public education on its fundamentals and improved fiat-to-Bitcoin conversion processes.

While Bitcoin miners are currently facing reduced rewards, an increase in Bitcoin's hashrate indicates resilience in the network's infrastructure, suggesting potential for future price increases.

As of June 30, 2025, Bitcoin has returned a flat -0.4% year-to-date, a stark contrast to its impressive +121% return in 2024 and a compound annual growth rate of 98.60% over the past 13 years.