Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, not too long ago gave her opinion on the impression that Bitcoin Halving may have on the flaghsip crypto’s value. This provides to the continued debate on whether or not or not the Halving occasion may trigger Bitcoin’s price to rise to $100,000.
Bitcoin’s Worth Surge May Not Come Instantly
Phung talked about throughout an interview with BeInCrypto that Bitcoin’s value tends to extend round 6 to 12 months after the Halving and never instantly. That is evident from the previous Halving occasions, as Bitcoin’s significant price gains happened one 12 months after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a value enhance of over 8,000% one 12 months after the occasion.
Source: Milk Road
In the meantime, BTC noticed a value enhance of 284% and 559% one 12 months after the second and third Halving occasions, which came about on July 9, 2016, and Could 11, 2020, respectively. Phung additional famous that Bitcoin’s value good points come from the discount in Bitcoin miners’ supply, which helps enhance shortage and drive up its value, particularly when demand is steady.
In February, NewsBTC reported that Bitcoin’s demand was far outpacing the miners’ provide. This led to a number of crypto analysts making bullish predictions that Bitcoin’s value may enhance exponentially when miners’ rewards are additional lower in half later this month. One such analyst was MacronautBTC, who raised the potential of Bitcoin rising to $237,000.
This Bitcoin Halving May Be Completely different
Regardless of the crypto market being recognized to comply with historical patterns, Phung emphasised that the market will also be unpredictable, opening the potential of this Halving being completely different from previous ones. Furthermore, this cycle has already confirmed completely different, contemplating that for the primary time, Bitcoin hit a new all-time high (ATH) earlier than the Halving.
Moreover, the analyst acknowledged that the Bitcoin market is “a lot bigger and extra established in comparison with earlier halvings.” Nevertheless, Phung nonetheless expects a value enhance after the halving, though she admitted that the precise timing is unsure, that means it may very well be earlier and even later than ordinary.
Crypto analyst Rekt Capital additionally echoed an analogous sentiment about how issues may very well be completely different this cycle when he shared his analysis of the 5 phases of the Bitcoin Halving. Particularly, he said that the Re-accumulation part “might not final very lengthy earlier than extra uptrend continuation” since that is the primary time the Re-accumulation vary will likely be round a brand new ATH.
Market Sentiment May Decide Bitcoin’s Worth Put up-Halving
Phung additionally elaborated on how the market sentiment after the halving may present insights into Bitcoin’s future trajectory. She predicts that crypto investors will seemingly be bullish as soon as the halving takes place, contemplating the importance of the occasion on Bitcoin’s provide.
Nevertheless, as soon as the joy in regards to the halving wears off, a number of metrics, equivalent to value charts, buying and selling quantity, social media discussions, and on-chain knowledge like energetic addresses or exchange supply, will must be analyzed to find out whether or not or not traders are nonetheless bullish.
In the meantime, Phung prompt that the value surge that happens instantly after the Bitcoin halving might not be shortlived this time round since extra institutional investors are actually concerned and have helped create a “extra mature market.”
BTC value rises to $70,700 | Supply: BTCUSD on Tradingview.com
Featured picture from Bitcoin Information, chart from Tradingview.com
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