Bitwise: Market overlooks Bitcoin halving’s future effects

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Approaching the upcoming Bitcoin halving in a few days, there’s widespread excitement. However, Bitwise Asset Management issues a cautionary note: the crypto market might be underestimating the event’s potential long-term effects. According to Bitwise, past Bitcoin Halvings, specifically the one scheduled for April 20th, have not lived up to the hype.

Based on historical data from previous events, analysts observe a consistent pattern: the price of the asset tends to decrease slightly in the month following a halving. However, this is typically followed by significant price growth within the subsequent year. For example, after the 2012 halving, the asset’s price experienced modest growth of 9% initially but later experienced an impressive surge, reaching an increase of over 8,800% the following year.

Historically, Bitcoin’s price has significantly increased in the long term after undergoing a process called halving. Let’s examine the data from past occurrences:

— Bitwise (@BitwiseInvest) April 16, 2024

After the 2016 bitcoin halving, events unfolded similarly. Initially, Bitcoin’s value dipped by 10% in the subsequent month. However, it subsequently soared to an astounding $20,000 in the year 2017. In contrast, following the 2020 halving, Bitcoin experienced a modest 6% increase during the initial post-halving month. Yet, this was only the beginning as its value surged an impressive 548% over the next year, reaching a new record high of $69,000.

Based on Rekt Capital’s perspective, the market has experienced a 16% decrease as of now. This reduction may indicate more downward movement ahead, considering there have been five notable pullbacks. Additionally, Cold Blooded Shiller’s viewpoint suggests that Bitcoin could experience a 30% correction. Consequently, the price might fall to approximately $51,000 despite temporary forecasts.

Also   read: Bitcoin Users to Increase Following Fourth Halving

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2024-04-17 15:00