The Halving in near. Will we experience a Pre Halving dump as history suggests or will it be canceled due to institutional money entering the space?
Evidence for a Pre-Halving Dump:
Historical Precedents: Supporters of the theory point to past Halving events where #Bitcoin did experience price dips before the actual Halving. For example, in 2012, there was a 40% price drop three days before the Halving, and in 2020, the "Black Thursday" market crash coincided with the Halving period.
Evidence Against a Pre-Halving Dump:
Market Conditions Play a Role: Critics argue that the overall market conditions and external factors often have a more significant impact on price movements than the Halving itself. For instance, the 2020 price drop was likely influenced by the global economic uncertainty caused by the COVID-19 pandemic.
Limited Historical Data: Since there have only been three Halvings so far (2012, 2016, and 2020), it's a relatively small data set to draw definitive conclusions about a consistent pre-Halving dump.
Increased Institutional Interest: The Bitcoin market has matured significantly since the earlier Halvings. Increased institutional investment might lead to a different price dynamic compared to the past. $BTC $ETH
what are your thoughts? Feel free to comment.
