Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, just lately gave her opinion on the affect that Bitcoin Halving might have on the flaghsip crypto’s value. This provides to the continuing debate on whether or not or not the Halving occasion might trigger Bitcoin’s value to rise to $100,000.
Bitcoin’s Worth Surge Would possibly 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 occurred on July 9, 2016, and Could 11, 2020, respectively. Phung additional famous that Bitcoin’s value positive aspects come from the discount in Bitcoin miners’ provide, 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 might enhance exponentially when miners’ rewards are additional reduce in half later this month. One such analyst was MacronautBTC, who raised the potential for Bitcoin rising to $237,000.
This Bitcoin Halving May Be Totally different
Regardless of the crypto market being identified to observe historical patterns, Phung emphasised that the market may also be unpredictable, opening the potential for 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.” Nonetheless, Phung nonetheless expects a value enhance after the halving, though she admitted that the precise timing is unsure, which means it might be earlier and even later than ordinary.
Crypto analyst Rekt Capital additionally echoed an identical sentiment about how issues might be completely different this cycle when he shared his analysis of the 5 phases of the Bitcoin Halving. Particularly, he acknowledged 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 probably 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 might present insights into Bitcoin’s future trajectory. She predicts that crypto investors will probably 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, comparable to value charts, buying and selling quantity, social media discussions, and on-chain knowledge like lively addresses or alternate provide, will must be analyzed to find out whether or not or not buyers are nonetheless bullish.
In the meantime, Phung advised 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 value rises to $70,700 | Supply: BTCUSD on Tradingview.com
Featured picture from Bitcoin Information, chart from Tradingview.com
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