Will the "Sell the News" effect happen after Bitcoin Halving?
Some analysts predict Bitcoin's upcoming Halving event could cause a "Sell the News" effect. This means that the price of Bitcoin may increase before the event but then decline over the course of several months.
Explaining the above statement, Steno Research believes that Bitcoin will face selling pressure from short-term investors - those who buy BTC with the aim of making a quick profit. They also recalled that BTC plummeted from $48,000 to $40,000 after the Spot BTC ETFs were approved, before exploding in the past two months.
This research organization also argues about selling pressure from BTC ETF investors & especially miners. After the Halving, the reward for Bitcoin miners will be halved per block (from 6.5 BTC to 3.25 BTC). To cover operating costs, miners can sell a portion of the Bitcoin they mine.
Based on historical data, Steno Research cited the 2016 Halving event as evidence, when Bitcoin price fell 8.4% in just 90 days after the Halving. They predict the same thing could happen this time.
However, some other analysts believe that Halving is still a positive factor for Bitcoin in the long term. They believe that after the selling pressure is absorbed, Bitcoin price will continue to grow.
In a recent report, the Coinbase exchange also predicted that the Halving event may not create a strong price increase as expected. Coinbase notes that Bitcoin dominance in the Crypto market (BTC.D) remains high (over 50%).
Regarding timing, the report says that the cryptocurrency market often tends to decrease activity around this time (April, May) - also known as "Sell in May". June to September often sees Bitcoin price grow stronger than the remaining months.
đŻ Some experts believe that BTC will face significant selling pressure after the Halving, which could cause a short-term decrease. However, they remain confident in BTC growth in the long term once the selling force is absorbed.
