Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, not too long ago gave her opinion on the impression that Bitcoin Halving might have on the flaghsip crypto’s worth. This provides to the continuing debate on whether or not or not the Halving occasion might trigger Bitcoin’s worth to rise to $100,000.
Bitcoin’s Value Surge May Not Come Instantly
Phung talked about throughout an interview with BeInCrypto that Bitcoin’s worth 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 vital worth good points happened one 12 months after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a worth improve of over 8,000% one 12 months after the occasion.
Supply: Milk Street
In the meantime, BTC noticed a worth improve of 284% and 559% one 12 months after the second and third Halving occasions, which passed off on July 9, 2016, and Could 11, 2020, respectively. Phung additional famous that Bitcoin’s worth good points come from the discount in Bitcoin miners’ provide, which helps improve shortage and drive up its worth, particularly when demand is secure.
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 worth might improve exponentially when miners’ rewards are additional minimize in half later this month. One such analyst was MacronautBTC, who raised the potential for Bitcoin rising to $237,000.
This Bitcoin Halving Might Be Totally different
Regardless of the crypto market being identified to comply with historic patterns, Phung emphasised that the market can be unpredictable, opening the potential for this Halving being totally different from previous ones. Furthermore, this cycle has already confirmed totally different, contemplating that for the primary time, Bitcoin hit a new all-time excessive (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.” Nonetheless, Phung nonetheless expects a worth improve after the halving, though she admitted that the precise timing is unsure, which means it may very well be earlier and even later than standard.
Crypto analyst Rekt Capital additionally echoed the same sentiment about how issues may very well be totally different this cycle when he shared his evaluation of the 5 phases of the Bitcoin Halving. Particularly, he said that the Re-accumulation section “might not final very lengthy earlier than extra uptrend continuation” since that is the primary time the Re-accumulation vary can be round a brand new ATH.
Market Sentiment Might Decide Bitcoin’s Value Put up-Halving
Phung additionally elaborated on how the market sentiment after the halving might present insights into Bitcoin’s future trajectory. She predicts that crypto traders will doubtless be bullish as soon as the halving takes place, contemplating the importance of the occasion on Bitcoin’s provide.
Nonetheless, as soon as the joy in regards to the halving wears off, a number of metrics, akin to worth charts, buying and selling quantity, social media discussions, and on-chain information like lively addresses or change provide, will have to be analyzed to find out whether or not or not traders are nonetheless bullish.
In the meantime, Phung urged that the worth surge that happens instantly after the Bitcoin halving might not be shortlived this time round since extra institutional traders at the moment are concerned and have helped create a “extra mature market.”
BTC worth rises to $70,700 | Supply: BTCUSD on Tradingview.com
Featured picture from Bitcoin Information, chart from Tradingview.com
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