According to the Coinbase exchange, many traders are eyeing the Bitcoin halving event as the main driver for the potential price spike, but this time of year will be an obstacle.

Coinbase explained further in its April 5 market commentary report that the cryptocurrency market will need to find another story to push prices even higher.

“The BTC halving, scheduled for April 20 or 21, could be a catalyst for higher prices, but it will come at a typically weak time of year for the crypto market and its peers. other risky assets,” the exchange said.

Bitcoin has typically seen monthly returns of around 2.7% from June to September since 2011, while in the remaining eight months, returns average around 19.3%, according to data from the company Brave New Coin digital asset research.

Meanwhile, Coinbase added that total cryptocurrency volume “also continues to slow as the market tries to find the next story for strength.”

Over the past 24 hours, total crypto volume was $61.78 billion, down 33.25% from the previous day, according to CoinMarketCap data.

However, the exchange sees signs that new investors participating in the market will increase in the near future:

“In our view, the growing acceptance of Bitcoin as a form of “digital gold” could stimulate demand from a small group of new investors in this market regime.”

According to CoinStats data, Bitcoin's dominance in the overall market is 50.6%. This represents Bitcoin's market capitalization relative to the overall cryptocurrency market.

Bitcoin dominance chart | Source: CoinStats

Furthermore, the report explains that those who wait for prices to fall to buy may find the bottom becomes less and less as more investors get involved.

Coinbase wrote:

“As a result, we think dips are likely to be bought more aggressively than in previous cycles, even if volatility persists during price discovery.”

Halving events are often associated with spikes in Bitcoin prices.

After the previous halving event in May 2020, Bitcoin price skyrocketed. Starting at $8,787 during the halving, the price increased and eventually reached nearly $69,000 in November 2021.

On April 6, as Bitcoin Magazine reported, the United States Court of Appeals ruled in favor of Coinbase, confirming the secondary sale of cryptocurrency on its platform does not violate the Securities Exchange Act contract.

The plaintiffs claim that Coinbase is offering and selling unregistered securities. Furthermore, they also accused this exchange of violating many regulations of securities law.

However, Coinbase argued that the secondary coin sale did not meet securities trading criteria, denying the relevance of securities regulations.



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