Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, lately gave her opinion on the affect that Bitcoin Halving might have on the flaghsip crypto’s worth. This provides to the continuing debate on whether or not or not the Halving occasion might trigger Bitcoin’s worth to rise to $100,000.
Bitcoin’s Worth Surge Would possibly Not Come Instantly
Phung talked about throughout an interview with BeInCrypto that Bitcoin’s worth 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 worth positive factors took place one yr after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a worth enhance of over 8,000% one yr after the occasion.
In the meantime, BTC noticed a worth enhance of 284% and 559% one yr after the second and third Halving occasions, which passed off on July 9, 2016, and Might 11, 2020, respectively. Phung additional famous that Bitcoin’s worth positive factors come from the discount in Bitcoin miners’ provide, which helps enhance shortage and drive up its worth, particularly when demand is secure.
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 worth might enhance exponentially when miners’ rewards are additional reduce in half later this month. One such analyst was MacronautBTC, who raised the opportunity of Bitcoin rising to $237,000.
This Bitcoin Halving May Be Completely different
Regardless of the crypto market being identified to comply with historic patterns, Phung emphasised that the market will also be unpredictable, opening the opportunity of this Halving being totally different from previous ones. Furthermore, this cycle has already confirmed totally 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.” Nevertheless, Phung nonetheless expects a worth enhance after the halving, though she admitted that the precise timing is unsure, that means it could possibly be earlier and even later than regular.
Crypto analyst Rekt Capital additionally echoed the same sentiment about how issues could possibly be totally different this cycle when he shared his evaluation of the 5 phases of the Bitcoin Halving. Particularly, he said 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 probably be round a brand new ATH.
Market Sentiment May Decide Bitcoin’s Worth Submit-Halving
Phung additionally elaborated on how the market sentiment after the halving might 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.
Nevertheless, as soon as the joy in regards to the halving wears off, a number of metrics, reminiscent of worth charts, buying and selling quantity, social media discussions, and on-chain information like energetic addresses or change provide, will have to be analyzed to find out whether or not or not traders are nonetheless bullish.
In the meantime, Phung instructed that the worth surge that happens instantly after the Bitcoin halving might not be shortlived this time round since extra institutional traders at the moment are concerned and have helped create a “extra mature market.”
