Crypto News- The Bitcoin halving is just around the corner, slated for April 20, and Bitwise Asset Management isn’t painting a rosy picture for the immediate aftermath. Despite the hype surrounding this event, Bitwise points out a historical trend: in the month following the halving, Bitcoin’s price has typically taken a dip. But here’s the catch: in the year following each halving, the gains have been astronomical, often soaring to triple-digit percentage points.
Bitwise Signals Alarm: Bitcoin Halving’s Lasting Effects Overlooked by Crypto Market
Let’s take a trip down memory lane. After the 2012 halving, Bitcoin saw a modest 9% uptick in the month post-halving. Yet, over the next year, it skyrocketed a staggering 8,839%. Fast forward to 2016, and the story repeats: a 10% dip immediately after the halving, followed by a remarkable 285% surge culminating in the $20,000 peak in 2017. Then came 2020, witnessing a mere 6% price hike post-halving, but brace yourselves for the mind-boggling 548% surge in the year following.
Unlocking the Bitcoin Puzzle: Short-Term Perception Versus Long-Term Reality
Bitwise sums it up neatly: the market seems to grasp the short-term implications of the halving but grossly underestimates its long-term impact. And here’s an intriguing twist: this cycle marks the first time Bitcoin has hit an all-time high before the halving.
But not everyone is popping champagne just yet. Industry insiders like Markus Thielen, head of research at 10x Research, foresee a potential $5-billion miner sell-off post-halving, casting shadows on the market. Marathon CEO Fred Thiel echoes this sentiment, suggesting that the halving rally may have already been priced in, accelerating what would typically follow post-halving.
And the recent market correction? Well, it’s sending shivers down some spines. Analysts like Rekt Capital and Cold Blooded Shiller are mulling over correction magnitudes and historical trends, hinting at the possibility of BTC sliding further, perhaps even down to the $51,000 mark. So, while the halving may steal the spotlight, the road ahead for Bitcoin could be a bumpy one.
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