Bitcoin’s Rally: Has the Halving Already Been Factored into Prices? Coinbase Analysts Share Views

Crypto News- The eternal debate of whether Bitcoin’s halving is already factored into the market resurfaces with each halving cycle, leaving many investors pondering. However, Coinbase analysts Duong and Han present a compelling argument this time around, highlighting a significant data point.

Bitcoin’s Rally: Has the Halving Already Been Factored into Prices? Coinbase Analysts Share Views

In their recent note to The Block, they point out that this halving cycle marks a first: Bitcoin surpassing its all-time high before the halving itself. This suggests that shrewd traders might have already priced in the halving’s impact.

Yet, they caution against dismissing the potential for a rally driven by the halving. The prevailing belief that the event could drive prices higher might still influence market behavior.

Scheduled between April 16 and April 22, this year’s halving looms on the horizon. Despite Bitcoin hovering around the $70,000 mark lately, a recent drop to the $65,000 range hints at evolving market sentiment.

YouHolder Risk Manager Sergei Gorev echoes this sentiment, suggesting that the market might have priced in the halving, with traders seizing profits ahead of expected volatility.

Coinbase Report: Halving’s Impact on Bitcoin’s Future Uncertain Amid Evolving Market Dynamics

Coinbase Institutional’s recent report further complicates predictions, citing the limited historical data from only three prior halvings. Duong emphasizes the event’s impact on Bitcoin’s visibility and highlights new market dynamics, like spot ETF inflows and institutional interest, which could alter traditional halving cycle outcomes.

Traditionally, Bitcoin experiences significant gains in the 12 to 18 months post-halving, driven by reduced supply and increasing demand. However, the current landscape, marked by the introduction of 11 spot Bitcoin ETFs, challenges conventional wisdom.

Despite historical patterns, Coinbase suggests that perhaps the anticipated gains have already materialized, given the recent market dynamics. As the halving approaches, the Bitcoin community eagerly awaits to see how these factors shape its future trajectory.