As the halving takes place, there are several price expectations. Here’s what experts think
The halving event will significantly reduce the supply coming into the market, coinciding with a time when demand for BTC is rapidly growing.
But executives from hedge funds, crypto exchanges, payment platforms and blockchain analytics firms warn that investors should not expect Bitcoin to hit an all-time high immediately after the halving.
Brian Dixon, CEO of hedge fund Off the Chain Capital, echoed this view, suggesting that price appreciation could take 12 to 18 months.
The halving is coinciding with a marked increase in institutional participation in the cryptocurrency markets. The launch of new physically-backed Bitcoin ETFs has introduced a new wave of investors to the asset class.
Alex Gladstein, Chief Strategy Officer at blockchain analytics firm Chainalysis, points out that the percentage of Bitcoin held by institutional investors has increased after each halving event.
“Institutions are not just entering the market, but they are now shaping the direction of the market,” Gladstein said.
While there is a consensus that the price of Bitcoin will eventually rise, market watchers believe that the short-term price action could be choppy.
This is because current market conditions differ from those preceding previous halving events. According to some analysts, investors could sell their Bitcoin holdings in the wake of the halving event.
That could happen particularly if market sentiment is negatively affected by external factors, such as rising tensions in the Middle East, according to Jag Kooner, head of derivatives at Bitfinex.
