Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, not too long ago gave her opinion on the influence 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 Would possibly 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 important worth positive factors took place one 12 months after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a worth enhance of over 8,000% one 12 months after the occasion.
Supply: Milk Street
In the meantime, BTC noticed a worth enhance of 284% and 559% one 12 months after the second and third Halving occasions, which occurred on July 9, 2016, and Could 11, 2020, respectively. Phung additional famous that Bitcoin’s worth positive factors come from the discount in Bitcoin miners’ provide, which helps enhance 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 enhance exponentially when miners’ rewards are additional minimize in half later this month. One such analyst was MacronautBTC, who raised the potential of Bitcoin rising to $237,000.
This Bitcoin Halving Might Be Completely different
Regardless of the crypto market being identified to observe historic patterns, Phung emphasised that the market can be unpredictable, opening the potential of 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 enhance after the halving, though she admitted that the precise timing is unsure, which means it could possibly be earlier and even later than typical.
Crypto analyst Rekt Capital additionally echoed an analogous sentiment about how issues could possibly be totally different this cycle when he shared his evaluation of the 5 phases of the Bitcoin Halving. Particularly, he acknowledged that the Re-accumulation section “might not final very lengthy earlier than further uptrend continuation” since that is the primary time the Re-accumulation vary will probably 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 buyers will seemingly be bullish as soon as the halving takes place, contemplating the importance of the occasion on Bitcoin’s provide.
Nonetheless, as soon as the thrill in regards to the halving wears off, a number of metrics, resembling worth charts, buying and selling quantity, social media discussions, and on-chain information like energetic addresses or alternate provide, will should be analyzed to find out whether or not or not buyers are nonetheless bullish.
In the meantime, Phung instructed that the worth surge that happens instantly after the Bitcoin halving might not be shortlived this time round since extra institutional buyers 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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