Bitcoin bisector It’s coming fast. Market analysts say: decryption This time, there is a unique situation that will play a significant role for traders and investors.
The lingering doubt for most people is the age-old question: Is the Bitcoin halving reflected in the price?
The largest digital coin by market capitalization has surged in value since the last three halvings, but the effect was not immediate. And this time, other factors are at play, including renewed interest from retail investors and the upcoming launch of Bitcoin ETFs in the US market. interest rate This could be positive for risk assets overall due to Fed cuts.
For those of you who don’t know, Bitcoin halving means that the payouts of miners, the individuals and groups who process transactions on the blockchain, mint new coins and receive rewards in the process, are cut in half.
The idea is to curb Bitcoin’s inflation by limiting the amount of new digital coins entering the market. This event is implemented in the Bitcoin code and occurs approximately every four years until a total of 21 million Bitcoins have been mined.
Dessislava Aubert, senior analyst at analytics firm Kaiko, said: decryption Leverage is increasing, and BTC open interest surpassed $11 billion last week for the first time since 2021. This means traders are placing bigger bets on Bitcoin by borrowing capital through derivatives markets ahead of the long-awaited event, expecting the price of the cryptocurrency to rise in the short to medium term.
However, there are no guarantees.
“A halving does not guarantee prices to rise,” she said. Litecoin—Also undergoes a halving, but no price increase occurs after the event.
However, she added that this time there is more hype surrounding the event and the cryptocurrency space has matured.
“There are some key differences with respect to previous events that could impact the price performance of BTC: The market has matured (volatility has decreased) and miners are actively preparing for events and raising liquidity through fundraising and selling. ,” she said.
After the Securities and Exchange Commission last month Approved Top 10 Bitcoin Exchange Traded Funds (ETFs) The price of the largest cryptocurrency has risen as demand for the asset grows.
Major fund managers like BlackRock have snatched up billions of dollars in Bitcoin as clients buy ETF shares. Tracks the underlying price of an asset.
Aubert argued that this is helping Bitcoin in the long run, regardless of the halving. “Also, the sector has already consolidated significantly during the bear market, and most importantly, there is steady demand for ETFs,” she said.
Market analyst Craig Erlam said: decryption He added that price movements in the coming months should not be directly attributable to the halving, and that a rise in Bitcoin’s price is “something that has to happen over a very long period of time.”
Mikkel Morch, founder of digital asset investment fund ARK36, added that a mature market, especially ETF approval, could help Bitcoin hit new all-time highs this halving.
“The coming halving is more than a repeat of history,” he said. “This will be the moment when Bitcoin’s institutional adoption, market maturity, and resilience to a complex macroeconomic canvas are truly revealed.”
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The views and opinions expressed by the author are for information purposes only and do not constitute financial, investment or other advice.