- The upcoming Bitcoin halving event is expected to follow the pattern of buy-the-rumor, sell-the-news, according to the Crypto.com CEO.
- While there will be selling pressure initially, the long-term impact of the halving will be positive on Bitcoin’s price.
- Industry experts have mixed opinions on the impact of the halving, with some anticipating a substantial rally post-halving, while others expect negative price action before and after the event.
The Bitcoin halving has historically been followed by significant bull runs. However, some experts are cautious about anticipating a major price surge this time. There are a few key factors that could dampen bullish momentum around the 2024 halving.
Short-Term Selling Pressure
Leading up to the halving, there is expected to be selling pressure in the market as traders take profits. Cryptocom CEO Kris Marszalek predicts traders will “buy the rumor, sell the news” around the event itself. This means hype building up to the halving may not translate into a sustained price increase right after. The timing in April could also contribute to selling activity.
Miners Preparedness
Many miners have been accumulating BTC and upgrading equipment ahead of the halving. This preparation could reduce the impact on the Bitcoin supply rate. Marathon CEO Fred Thiel believes the halving may already be priced into the market to some extent. However, the computational difficulty for miners will still double overnight.
Cautious Industry Outlook
Some industry leaders like Arthur Hayes are cautious about excessive bullishness. Coinbase has similarly warned traders not to rely too heavily on the typical post-halving price appreciation. The unpredictable macro environment makes the halving impact uncertain.
Long-Term Positive Effects
Despite short-term uncertainties, most experts remain optimistic about Bitcoin’s price potential in the 6 months following the halving. Kris Marszalek expects “pretty decent action” during this period. The reduced BTC supply rate will likely have a positive effect long-term.
Conclusion
While the Bitcoin halving may not immediately trigger a major bull run, the event will likely support more sustainable, long-term growth. The halving remains a significant milestone for Bitcoin that highlights the assets fixed supply. Even if short-term selling materializes, the halving will reinforce Bitcoin’s deflationary nature and role as a store of value over the long run.
