Historically, every Bitcoin halving — a disinflationary mechanism inscribed in the currency’s code by Satoshi Nakamoto — has come a year or two before a new all-time high.

This is partly because a halving cuts the block reward paid to miners in half, reducing the number of new bitcoin being created and theoretically making bitcoin more scarce.

For example, with the latest halving to come, the block reward will fall from 6.25 bitcoin (BTC) to 3.125 BTC.

The three previous Bitcoin halvings occurred in the run-up to an all-time high, which then gave way to a price drawdown — until the next halving helped ignite another rally, according to some market observers. 

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