Why #halving of #Bitcoin of 2024 may be different from the previous one
Although the halving event is considered one of the main catalysts for Bitcoin bull markets, next year may be different.
The impact of the Bitcoin halving on cryptocurrency prices is often overestimated and the next halving, scheduled for April 2024, could unfold differently from previous ones, according to a popular analyst.
The halving event, which occurs every four years, halves the rate at which new bitcoins are created and is generally considered one of the main catalysts for the biggest bullish moves for Bitcoin.
Despite the bullish narrative surrounding the halving, the event itself does not guarantee a rise in the price of Bitcoin.
If the reduction in the supply of new Bitcoins is not accompanied by significant demand, prices are unlikely to skyrocket.
Furthermore, the halving is a completely predictable event: this means that all market participants know in advance when it will occur, and therefore their current price may reflect the impact of the halving before it happens.
"The things we most anticipate usually don't happen," said #Bloomberg analyst Mike McGlone, commenting on the long-awaited event.
"And that's what worries me. There is complete consensus," he continued.
Furthermore, each time the halving occurs, its impact on new Bitcoin supply decreases; Over time, its impact will eventually become irrelevant. Changes in demand, rather than supply, are becoming the dominant factor influencing the price of Bitcoin.