Crypto experts remain uncertain on short-term Bitcoin price impact post Halving
The most valued crypto token Bitcoin is unlikely to see any drastic price increase at least in the next few weeks following the Halving event on April 20, according to industry experts. The fourth Halving happened at a time when the crypto prices remained unstable amidst macroeconomic and geopolitical uncertainties.
Bitcoin, though, continues to see some tailwinds driven by institutionalisation of the token through the approval of Bitcoin Spot ETFs in the US and Hong Kong.
Bitcoin Halving happens every four years, wherein when the new Bitcoins are mined the reward for mining gets split in half.
According to Sidharth Sogani, co-founder and CEO at crypto research firm CREBACO Global, there has not been any immediate impact as the prices have remained flat. “Going by the past trends, it takes about three-four weeks after Halving for the prices to go up,” he told Moneycontrol.
This headline highlights the ongoing uncertainty surrounding the short-term impact of the recent Bitcoin halving event on its price. Here’s a breakdown:
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Bitcoin Halving: This is a pre-programmed event in Bitcoin’s code that halves the block reward for miners every 210,000 blocks (roughly four years). It happened recently on April 20, 2024.
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Reduced Supply: The halving essentially cuts the rate at which new Bitcoins enter circulation, potentially impacting supply and demand dynamics.
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Uncertain Price Impact: Crypto experts are divided on how this will affect Bitcoin’s price in the short term (next few weeks). Some possible reasons for this uncertainty:
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- Historical Precedent: While past halving events have often been followed by price increases, it hasn’t been a guaranteed outcome. Other market factors can play a significant role.
- Macroeconomic Conditions: Broader economic factors like inflation, interest rates, and geopolitical events can significantly influence cryptocurrency prices.
- Market Psychology: Investor sentiment and speculative trading can cause short-term price fluctuations, making it difficult to predict the immediate impact.
What this means for you:
- Don’t rely solely on the halving event: When considering Bitcoin investments, focus on your long-term strategy and risk tolerance.
- Do your own research: Analyze market trends, economic conditions, and expert opinions before making any investment decisions.
- Be cautious of short-term predictions: The cryptocurrency market is volatile, and short-term price movements can be unpredictable.
Additional points to consider:
- Some experts might believe the market has already priced in the halving event, leading to no significant short-term change.
- Others might anticipate a delayed reaction, with the price increase happening weeks or months after the halving.
It’s important to remember that cryptocurrency is a complex and risky investment. Always conduct thorough research and invest only what you can afford to lose.