Chris Marsalek, the director of the cryptocurrency exchange Crypto.com, has cautioned traders about an impending #Bitcoin price #dump due to the scheduled halving event on April 19th.
He suggests that as the date approaches, there may be a sell-off of coins in line with the trading principle of "buy on rumors, sell on news." However, in the long term, Marsalek believes that the halving will have a positive impact on the market.
The positive effect of the halving, as explained by Chris, stems from the 50% reduction in Bitcoin's inflation rate. Following the halving, miners will, on average, mine 450 instead of 900 bitcoins per day, reducing the supply of digital assets. If demand remains unchanged or increases, this could inevitably lead to a rise in the price of BTC.
However, historical data suggests that a Bitcoin crash should not be expected. After the previous halving event in 2020, the cryptocurrency depreciated by no more than 28%, and a bullish trend did not resume until September. Markus Tilen, the head of research at 10x Research, attributes this phenomenon to miners gradually selling their accumulated bitcoins from the beginning of the year.
