The highly anticipated Bitcoin halving is just days away, but Bitwise Asset Management warns that the crypto market may be underestimating its long-term impact. Bitwise Asset Management points out that historically, the much-anticipated Bitcoin Halving set for April 20 often ends in disappointment.
Analysts suggest that the previous halving shows a trend of price decrease in the month following the event. The past three halving events have seen a similar pattern: a price drop immediately after the event, followed by a surge in price the following year.
For instance, during the 2012 halving, the asset’s price gained only 9%, but it increased by a staggering 8,839% the next year.
The 2016 halving followed a comparable sequence. Bitcoin’s price fell 10% the month after the event but skyrocketed to $20,000 in 2017. In 2020, Bitcoin surged 6% in the post-halving month before climbing 548% the following year to reach a record high of $69k.
According to Rekt Capital, the market has currently corrected by 16%, suggesting a potential for further decline amid five significant pullback corrections. Moreover, another analyst, Cold Blooded Shiller, noted that 30% corrections are not uncommon, hinting that Bitcoin could potentially drop to around $51,000 despite these short-term price predictions.
Also Read: Bitcoin Users to Increase Following Fourth Halving
