Forbes: Bitcoin network halving passed without fanfare and will not change the price of the asset

According to analysts from Forbes Advisor, the Bitcoin network halving event was rather uneventful, failing to have any significant impact on the price of the leading cryptocurrency.

The event went largely unnoticed, with no dramatic price movements occurring.

“Despite the block reward being halved from 6.25 BTC to 3.125 BTC per mined block, there was no noticeable pump in price. No fanfare, no fireworks, just a relatively stable price around $64,000,” noted Forbes Advisor.

It is clear that there is no direct correlation between halving events and BTC price changes. Experts suggest that the value of Bitcoin is now influenced by a variety of market factors.

One such factor is the sensitivity of Bitcoin to changes in interest rates. With the US struggling to control inflation, traders have adjusted their expectations for a Federal Reserve rate cut in 2024.

“The consumer price index data for March exceeded expectations, with 3.5% inflation over the past year. This weakened the expectations of any interest rate reductions in the first half of the year,” highlighted analysts at Forbes Advisor.

Additionally, investors should closely monitor trading activity as large-scale sales or statements by Bitcoin whales can negatively impact short-term prices and market sentiment.

“While previous halvings have historically resulted in price surges, the trajectory was never a straight line. Prices often pulled back before eventually reaching new peaks around 220 to 240 days later,” explained Forbes Advisor.

Forbes Advisor predicts that a long-term upward price trajectory will be influenced by a shift in supply and demand dynamics. As the rate of new Bitcoins entering circulation decreases, the built-in deflationary model of Bitcoin will gradually take effect.

Currently, the price of BTC is testing the $66,100 level.

Earlier, analysts from Coinbase, the largest American cryptocurrency exchange, stated that non-market factors such as political developments could significantly impact the price of Bitcoin and the overall cryptocurrency market.