The upcoming Bitcoin halving event in 2024 is expected to have a significant impact on the crypto market. Analysts at Steno Research believe it will follow a “buy the rumor, sell the news” pattern. There have been three halving events in Bitcoin’s history, with the most recent one occurring on May 11, 2020, reducing miner rewards to 6.25 BTC. Steno Research predicts that the next halving will resemble the 2016 halving, with a surge in BTC’s value leading up to the event, but a potential dip in price afterwards.
Steno Research analysts have identified similarities between the price performance of Bitcoin before and after the 2016 halving, suggesting that similar outcomes can be expected this time. The report highlights that Bitcoin’s price remained below its pre-halving level for the entire 90 days following the event, with a drop of 8.4% on the 90th day. Data from CryptoQuant shows that Bitcoin daily mining rewards are currently at their highest ever, indicating that miners are likely to sell off their Bitcoin to cover their mining costs, adding to the sell-side pressure.
The report explains that the halving itself is a bullish catalyst for Bitcoin’s price, once the selling pressure from miners subsides. This is when the real bullish momentum of the halving will become apparent, according to Steno Analyst Mads Eberhardt. Another analyst, Alex Wice, believes that the halving will cause a repricing that will send the price of Bitcoin soaring, as it is never fully priced in.
While some expect short-term volatility after the halving, Bitget Wallet CEO anticipates strong levels of interest and growth in the wider Web3 ecosystem due to the bullishness surrounding the event. At the time of publication, Bitcoin was trading at $71,563, experiencing a 3.8% increase in the last 24 hours.
How can anyone trust these analysts anymore? They’ve gotten it wrong so many times before.
Miners selling off their Bitcoin? Great, more selling pressure! Just what the market needs.
I agree with Alex Wice that the halving will cause a repricing that will make the price of Bitcoin soar. It’s always so intriguing to see how markets respond to such major events.
The fact that the halving itself is a bullish catalyst once the selling pressure from miners subsides is exciting. Mads Eberhardt really seems to understand the true impact of the halving.
Another halving event? Just another opportunity for the market to manipulate prices.
I’m impressed by Steno Research’s insightful analysis of the 2016 halving and how it might mirror the upcoming halving. It makes sense that there could be a surge in BTC’s value leading up to the event, followed by a potential dip in price.
The buy the rumor, sell the news pattern is getting old. Can’t we have some stability in the market?
It’s all just speculation and predictions. No one really knows what will happen.
Just when you think things are going well, the market takes a turn for the worse.