• Mon. May 20th, 2024

Concerns About the Halving of Bitcoin: Will the Same Thing Happen Again, or Is the Market About to Crash?

Phillip Bryant

ByPhillip Bryant

Apr 18, 2024
Concerns About the Halving of Bitcoin: Will the Same Thing Happen Again, or Is the Market About to Crash?

Bitcoin is currently in the lead, as the upcoming halving event that it is scheduled to undergo is causing investors to experience a mixture of excitement and uncertainty. This market has experienced a dramatic shift in dynamics, which could have a significant impact on the price of this digital asset. The fourth halving of Bitcoin is just a few days away, and the market has experienced this shift.

Unraveling BTC’s Halving Patterns: Understanding Pre-Event Price Behavior

A noteworthy discovery has been made by an analyst from CryptoQuant, shedding light on a consistent pattern in Bitcoin’s price behavior prior to each halving cycle. This pattern has emerged despite the recent downturn in the Bitcoin stock market.

The observed pattern involves a significant price reduction, a trend that has been consistent in previous halving instances. For instance, during the second halving event, the price of Bitcoin plummeted by four hundred and thirty-three percent, reaching a low of $465. However, it eventually surged to an all-time high of $19,600, a staggering increase that was unprecedented.

Similarly, prior to the third halving event, the digital currency experienced a decline of 20.35 percent, reaching a low of $8,078 before soaring to a high of $69,000. This occurred before the event.

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During the ongoing halving cycle, the price has already experienced a decline of 16.65%, reflecting the pattern observed in the past, as highlighted by CryptoQuant.

Price Volatility Before the Bitcoin Halving
 
“It is important to acknowledge that prior to each halving cycle, there tends to be a decline in price, a trend we have emphasized on multiple occasions in the past.” – By @OnchainTarek.

— CryptoQuant.com

Despite the decrease, CryptoQuant indicates that this decline is expected prior to halving events, suggesting that there may not be a need for concern. The analyst from CryptoQuant mentioned:

There’s no cause for concern, as this situation consistently occurs in every cycle, albeit with different percentages. It is advisable to adopt a gradual market entry strategy at strategically identified points. The road to the pinnacle of the present cycle remains unobstructed, and we are still in the early stages of this expedition.

The recent movement in Bitcoin’s price aligns with the findings outlined in the CryptoQuant report. The cryptocurrency has experienced a significant decline in the past week, with a decrease of more than 10% in the last seven days and an additional drop of 3.1% in the past 24 hours. At present, Bitcoin is being traded at $63,098, which suggests that the market is experiencing continued fluctuations.

Insights and Projections: Expert Analysis on the Bitcoin Market

After considering the forthcoming halving event, industry professionals present a variety of perspectives on Bitcoin’s future path. The Chief Executive Officer of Crypto.com, Kris Marszalek, acknowledges the possibility of a temporary increase in selling pressure in the days leading up to the halving event. In his statement, he refers to the well-known trading strategy known as “buy the rumor, sell the news.”

With that being said, Marszalek continues to maintain a positive outlook on the long-term effects of the halving, highlighting the fact that it has the potential to strengthen Bitcoin’s price movement over an extended period.

In agreement with this viewpoint, Samson Mow, the leader of Jan3, a BTC adoption-focused company, dismisses the current price decline as an “exaggeration,” predicting a bullish comeback following the halving event.

Mow highlights the upcoming halving as a potentially significant “supply shock” in the Bitcoin market, which could trigger the event. Recent regulatory authorizations for Bitcoin-related financial products in Hong Kong, as well as the acquisition of Bitcoin by spot Bitcoin exchange-traded funds, will be the driving forces behind this change.

However, you are familiar with the concept of halving. This is the beginning of a significant disruption in the supply chain. You’re monitoring the influx of funds into ETFs and assessing the level of demand. You’ve probably heard about the upcoming Hong Kong ETFs.
 
You’re the fearless predator amassing #Bitcoin in the midst of a flock of followers.
Phillip Bryant

Phillip Bryant

Phillip Bryant, an esteemed writer in the financial field, imparts his extensive knowledge of currency markets to the readers of Main Crypto News. With a wealth of experience in international finance and a keen sense of market trends, Bryant offers timely and perceptive analysis of foreign exchange, keeping readers well-informed.

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