Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, just lately gave her opinion on the impression that Bitcoin Halving may have on the flaghsip crypto’s value. This provides to the continued debate on whether or not or not the Halving occasion may trigger Bitcoin’s value to rise to $100,000.
Bitcoin’s Value Surge May Not Come Instantly
Phung talked about throughout an interview with BeInCrypto that Bitcoin’s value tends to extend round 6 to 12 months after the Halving and never instantly. That is evident from the previous Halving occasions, as Bitcoin’s vital value positive aspects took place one 12 months after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a value improve of over 8,000% one 12 months after the occasion.
Supply: Milk Highway
In the meantime, BTC noticed a value improve of 284% and 559% one 12 months after the second and third Halving occasions, which came about on July 9, 2016, and Could 11, 2020, respectively. Phung additional famous that Bitcoin’s value positive aspects come from the discount in Bitcoin miners’ provide, which helps improve shortage and drive up its value, particularly when demand is steady.
In February, NewsBTC reported that Bitcoin’s demand was far outpacing the miners’ provide. This led to a number of crypto analysts making bullish predictions that Bitcoin’s value may improve exponentially when miners’ rewards are additional lower in half later this month. One such analyst was MacronautBTC, who raised the potential of Bitcoin rising to $237,000.
This Bitcoin Halving May Be Completely different
Regardless of the crypto market being recognized to observe historic patterns, Phung emphasised that the market will also be unpredictable, opening the potential of this Halving being completely different from previous ones. Furthermore, this cycle has already confirmed completely different, contemplating that for the primary time, Bitcoin hit a new all-time excessive (ATH) earlier than the Halving.
Moreover, the analyst acknowledged that the Bitcoin market is “a lot bigger and extra established in comparison with earlier halvings.” Nonetheless, Phung nonetheless expects a value improve after the halving, though she admitted that the precise timing is unsure, that means it may very well be earlier and even later than typical.
Crypto analyst Rekt Capital additionally echoed an analogous sentiment about how issues may very well be completely different this cycle when he shared his evaluation of the 5 phases of the Bitcoin Halving. Particularly, he acknowledged that the Re-accumulation part “might not final very lengthy earlier than extra uptrend continuation” since that is the primary time the Re-accumulation vary will likely be round a brand new ATH.
Market Sentiment May Decide Bitcoin’s Value Put up-Halving
Phung additionally elaborated on how the market sentiment after the halving may present insights into Bitcoin’s future trajectory. She predicts that crypto traders will probably be bullish as soon as the halving takes place, contemplating the importance of the occasion on Bitcoin’s provide.
Nonetheless, as soon as the joy concerning the halving wears off, a number of metrics, similar to value charts, buying and selling quantity, social media discussions, and on-chain information like lively addresses or trade provide, will should be analyzed to find out whether or not or not traders are nonetheless bullish.
In the meantime, Phung advised that the value surge that happens instantly after the Bitcoin halving will not be shortlived this time round since extra institutional traders are actually concerned and have helped create a “extra mature market.”
BTC value rises to $70,700 | Supply: BTCUSD on Tradingview.com
Featured picture from Bitcoin Information, chart from Tradingview.com
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