Will Bitcoin price increase immediately after halving?
The halving has begun and with the halving events taking place, there are some price expectations. So what do the experts think?
The halving event will significantly reduce supply into the market, coinciding with a time when demand for BTC is growing rapidly.
But executives from hedge funds, cryptocurrency exchanges, payments platforms and blockchain analytics firms warn that investors shouldn't expect Bitcoin to hit an all-time high right after the halving.
“Price reactions don't usually happen immediately.” said Rikke Staer, CEO of the Coinify platform. “The big growth happens 6 to 18 months after the halving.”
Brian Dixon, CEO of hedge fund Off the Chain Capital, echoed this view, suggesting prices will start to rise in 12 to 18 months.
The halving event coincided with a significant increase in institutional participation in the cryptocurrency market. The launch of the new Bitcoin spot ETF has attracted a new generation of investors to the asset.
Alex Cable, Vice President of the WEMEA region at analytics firm Blockchain Chainalysis, points out that the proportion of Bitcoin held by institutional investors increases after each halving event.
Cable said: “Institutions are not just participating in the market, they are now shaping the direction of the market.”
While there is consensus that Bitcoin prices will eventually increase, market observers believe that prices will decline in the short term.
This is because current market conditions are different from previous halving events. According to some analysts, investors may sell their Bitcoin holdings when the halving event occurs.
This could especially be the case if market sentiment is negatively affected by external factors, such as escalating tensions in the Middle East.
