๐๐ฅ Crypto market โunderestimates the long-term impactโ of Bitcoin halving: Bitwise ๐ฅ๐
With the Bitcoin halving just days away on April 20, Bitwise Asset Management warns of historically disappointing price action in the month following this highly anticipated event.
According to Bitwise's analysis, past halvings have seen Bitcoin's price drop in the month immediately afterward. However, in the year following the halving, Bitcoin has witnessed minimum triple-digit percentage gains.
๐ Historical Trends Post-Halving:
- After the 2012 halving, Bitcoin gained 9% in the month after, followed by an astounding 8,839% surge in the subsequent year.
- Similarly, following the 2016 halving, Bitcoin fell 10% in the month after and then soared 285% to peak at $20,000 in 2017.
- In 2020, Bitcoin saw a 6% price gain in the month post-halving, followed by a remarkable 548% pump in the year following.
Bitwise suggests that while the market prices in the short-term impact of the halving, it underestimates the long-term impact based on historical data.
๐ Short-Term Pessimism and Market Corrections:
Industry executives and analysts express short-term pessimism, with expectations of potential market corrections post-halving. Markus Thielen predicts a $5-billion miner sell-off, while Marathon CEO Fred Thiel believes the halving rally was already factored in.
Trader and analyst Rekt Capital highlights significant market corrections ranging from 18% to 23% since the 2022 bear market bottom. Currently, markets have corrected by 16%, suggesting the possibility of further decline.
Fellow analyst Cold Blooded Shiller notes that 30% corrections are not uncommon, hinting at a potential fall in BTC to around $51,000.
๐ Amidst the uncertainty surrounding the halving, investors brace for potential short-term turbulence while keeping an eye on Bitcoin's long-term trajectory. Stay tuned as the crypto market navigates this pivotal event! ๐๐ #Bitcoin #BTC #HalvingImpact $BTC $USDC