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 Value Surge May 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 vital value good points took place one 12 months after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a value improve of over 8,000% one 12 months after the occasion.
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In the meantime, BTC noticed a value improve of 284% and 559% one 12 months after the second and third Halving occasions, which came about on July 9, 2016, and Could 11, 2020, respectively. Phung additional famous that Bitcoin’s value good points come from the discount in Bitcoin miners’ provide, which helps improve 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 improve exponentially when miners’ rewards are additional minimize in half later this month. One such analyst was MacronautBTC, who raised the opportunity of Bitcoin rising to $237,000.
This Bitcoin Halving Might Be Totally different
Regardless of the crypto market being recognized to comply with historic patterns, Phung emphasised that the market may also be unpredictable, opening the opportunity 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.” Nevertheless, Phung nonetheless expects a value improve after the halving, though she admitted that the precise timing is unsure, that means it may very well be earlier and even later than ordinary.
Crypto analyst Rekt Capital additionally echoed an identical 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 “could not final very lengthy earlier than extra uptrend continuation” since that is the primary time the Re-accumulation vary shall be round a brand new ATH.
Market Sentiment Might Decide Bitcoin’s Value Submit-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 doubtless be bullish as soon as the halving takes place, contemplating the importance of the occasion on Bitcoin’s provide.
Nevertheless, as soon as the joy in regards to the halving wears off, a number of metrics, equivalent to value charts, buying and selling quantity, social media discussions, and on-chain information like lively addresses or alternate provide, will should be analyzed to find out whether or not or not buyers are nonetheless bullish.
In the meantime, Phung prompt that the value surge that happens instantly after the Bitcoin halving might not be shortlived this time round since extra institutional buyers are actually concerned and have helped create a “extra mature market.”
BTC value rises to $70,700 | Supply: BTCUSD on Tradingview.com
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