DASH completed its halving this afternoon, but why didn’t the price of the coin rise?

I have talked about the topic of mining production reduction many times. There are many newcomers in the market who think that production reduction is a good thing. In fact, it is not. Mining production reduction is just an event!

What is good news? Good news means that this news can have an upward impact on the price of the currency. It may be that an institution is preparing to make large purchases to push up the price of the currency, or it may be that a certain currency is preparing to destroy deflation, making the circulating chips in the market less. If the funds in the market remain unchanged, the price will most likely rise.

However, the reduction in mining production does not meet the conditions required for good news. Why?

1. The reduction in mining output only reduces the mining income for miners, but for the market, there is no change in the funds or chips in the market.

2. The production cut has been planned for a long time and is not a temporary news. Just like after the DASH production cut was completed this time, we already know roughly when the next production cut will be, so the market will not react to the completion of the production cut. If it wants to react, it will not wait until the production cut is completed, but earlier. This is the expectation.

Once the market has expectations, it will usually hype in advance. In the first half of the year, the prices of DASH and LTC were very strong for a period of time. This is the market's hype about the two brothers who cut production. But hype is always hype, it will always end. When it is hyped for a round, it is basically abandoned by the market, and it is difficult to perform well for a period of time afterwards.

We can give a few examples. During last year’s World Cup, the market was very excited about CHZ, the leading football token.

From the chart, we can see that the World Cup, which will start in November, has started its first round of speculation in August, and there is basically a round of speculation every month. The overall intensity and amplitude are very large, but the high point of the last round of speculation in November did not break through the height of October, indicating that it was already a bit powerless at this stage. After the World Cup officially started, the market began to be bloodbathed. Because the funds for speculation had already left the market before, and the new funds realized it later, and found that the price of the currency did not continue to rise after the World Cup started, but lost confidence and began to sell, resulting in a continuous weakening of the market. Let's look at another case, Dogecoin

Last November, the stock price was hyped up by Musk's acquisition of Twitter, and it soared 2 times in one week. After this round of hype, it was like a deflated ball. Even with the overall good performance of the market this year, it is still very weak. This is because of the sequelae of the market hype. The market funds and attention are not on it, and no longer take care of it, leading to this situation.

Let’s look back at DASH

From the chart, we can see that DASH's performance in recent months can be said to be one of the weakest varieties. At the beginning of the year, it rose more than 100% as the market improved. There were speculations about the halving of DASH and LTC in the market, so it was stronger than the market in mid-February.

But what we can see is that the decline in March directly hit its original shape. I think at this stage DASH has been abandoned by the main force and funds began to flee, so it performed particularly weakly in the second rebound after March, and then it has been in a slump.

Therefore, DASH can also be considered a hyped product, but its strength is not that strong, and its weakness in the past few months is understandable.

At present, the DASH production reduction has been completed, and the coin price has also been halved compared to three months ago. Now that the narrative has ended, DASH has returned to its original attributes, an ordinary altcoin.

For an ordinary altcoin, market analysis is meaningless, so the analysis of DASH ends here. In another 40 days, LTC will also usher in a reduction in production. Will the market hype LTC again? I don’t know, but what I want to say is that the reduction in production is just an event. Don’t make too much of a myth, and don’t be led astray by the market’s emotions. Maybe their crazy bragging is just to find you to take over.

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