Last Comments Before Bitcoin Halving: How Will It React? Why Has BTC’s Decline Stopped?

Final Thoughts Before Bitcoin Halving: How Will It Respond? Why Has BTC’s Decline Stopped?

As the Bitcoin halving event draws near, the volatility of the Bitcoin price continues to increase, making it challenging to forecast its future movement.

Reports indicate that the Bitcoin halving is scheduled to occur on Saturday at around 04:11 Turkey time (UTC+3).

Julio Moreno, the Research Manager at CryptoQuant, explains that the selling pressure from traders has diminished because these traders have already cashed in their profits. CryptoQuant’s data indicates that the “realized price of short-term wallets” is nearly identical to the BTC market price. This suggests that short-term traders are no longer generating substantial profits that would incentivize immediate selling.

Despite the unexpected pullback that surprised the cryptocurrency community on Twitter, IntoTheBlock, an analysis firm, emphasizes that investor profitability remains strong, deeming the situation a “normal scenario” for Bitcoin. Vincent Maliepaard, the marketing director of IntoTheBlock, points out that over 97% of Bitcoin wallets have been profitable for an extended period, a rarity that may not be sustainable.

James Check, the chief analyst at Glassnode, notes that there has been a cooling effect in the 30-day rapid indicator. He believes this is a necessary correction for a healthy reset.

However, not all analysts share this optimism. Experts from JPMorgan and Goldman Sachs cautioned that Bitcoin could experience losses following the halving. “We anticipate a decline in Bitcoin price post-halving for various reasons,” stated a team of JPMorgan analysts led by Nikolaos Panigirtzoglou in a recent report.

Note: This information should not be considered as investment advice.