Bitcoin's #halving won't see a 600% return this year — so adjust your strategy
Bitcoin's price volatility over the past 30 days has steadied at approximately 4%, a significant drop from the nearly 18% recorded in April 2013. This trend suggests a resemblance to traditional equity markets, indicating a shift in Bitcoin's trading dynamics.
As the countdown to Bitcoin's halving continues, accelerated by the frenzy surrounding #ETFs , the impending event dominates discussions among crypto investors and the media alike. However, with just a few weeks remaining until the halving, the current market environment demands a reconsideration of trading strategies.
Historically, Bitcoin halvings have been characterized by sharp increases in volatility. Typically, we would witness sell-offs of 30%-40%, followed by a meteoric rise to new all-time highs within an average of 480 days post-halving. Yet, the introduction of the spot Bitcoin ETF has introduced a new dynamic.
To gauge Bitcoin's future price trajectory, it is crucial to analyze its volatility closely. In recent months, as excitement surrounding the halving mounts, we have observed anticipated pullbacks. However, these corrections have been less pronounced compared to previous cycles, with drawdowns remaining relatively shallow, not exceeding 25%. Even the most recent dip, around 15%, was swiftly followed by a rebound, propelling BTC back toward the $70,000 threshold.
Source - cointelegraph.com