Many cryptocurrency traders expect the bitcoin halving event to be a watershed event in 2024 and have a significant impact on the cryptocurrency market. However, analysts at Steno Research believe it will be a "buy the rumor, sell the news" style event.
There have already been three instances in bitcoin's history when miners' rewards were reduced from 50 #BTC to 25 BTC in 2012, to 12.5 BTC in 2016, and to 6.25 BTC during the latest reduction on May 11, 2020.
Steno Research believes that BTC is likely to repeat the 2016 rate cut when selling pressure intensified to four months later.
"We expect the next #bitcoin decline to be a short-term 'buy the rumor, sell the news' event that repeats the 2016 decline, but this time with heightened expectations of bitcoin-ETF holders. " the research firm stated. said.
Steno Research expects a sharp rise in the value of BTC ahead of the halving event. However, it believes the price could "fall below the price at the time of the halving event" within 90 days of the halving event.
Steno Research analysts found similarities in BTC price performance before and after the 2016 halving event, indicating that similar results can be expected in the upcoming event as well.
The report notes that the bitcoin price remained below pre-halving levels for all 90 days after the halving event. Specifically, on the 90th day after the halving, the bitcoin price was 8.4 percent below pre-halving levels," writes Steno analyst Mads Eberhardt.
According to CryptoQuant, daily bitcoin mining rewards are at an all-time high as the price trades near all-time highs. This means that while the amount of BTC issued after halving will be minimal, it will be expensive in dollar terms.
The report explains that at the current price of around $71,563, the cut would mean $224,512 per bitcoin, compared to the $55,000 that miners received after the previous halving of the price.
Bitcoin miners have never earned that much in recent months.
As a result, miners will likely sell all of their bitcoins over time to cover the cost of mining, the report noted.
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