This years Bitcoin halving event will be different than past ones, as the top cryptocurrency might actually lose value in the aftermath instead of rallying. Thats according to an analysis from JPMorgan, CoinDesk reports. The bank has predicted a decline in the value of the worlds largest cryptocurrency due to overbought market conditions. <\/p>\n
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Moreover, the current cryptocurrency price of approximately $61,200 remains above the banks volatility-adjusted comparison with gold of $45,000, CoinDesk reports. <\/p>\n
The Bitcoin halving will occur around April 19-20, cutting the current mining rate to 3.125 Bitcoin from 6.25 Bitcoin. Halving is an integral part of the Bitcoin blockchain system, which creates a monetary system that controls inflation. <\/p>\n
After briefly dropping below $60,000 a day earlier, Bitcoin was down 1.17% on Thursday morning, hovering around $62,000, according to CoinMarketCap. <\/p>\n
There has been a lot of discussion about this years Bitcoin halving being different from all the previous such events, primarily because the top cryptocurrencys price reached its peak a month before the halving event, which has never happened before. <\/p>\n
Historically, Bitcoin halving has boosted the price of the cryptocurrency. For instance, after the first Bitcoin halving in 2012, the price was $12. It went up to $44 100 days after the event and $135 after 300 days. <\/p>\n
Similarly, after the 2016 halving event, the cryptocurrency went from $658 to $1,551 in 300 days. And in the most recent halving of 2020, the price of $8,601 went to $50,941 within 300 days. <\/p>\n
Read more: The big Bitcoin halving event is almost here. Weve got answers to all your questions <\/p>\n
This time around, banking giants are not sure that the trend will continue given the market conditions. Recently, Goldman Sachs warned caution due to unpredictable macroeconomic factors regarding Bitcoins upcoming halving. <\/p>\n
Historically, the previous three halvings have been accompanied by BTC price appreciation after the halving, although the time it took to reach the all-time highs differs significantly, said Goldmans Fixed Income, Currencies and Commodities (FICC) and Equities team, per CoinDesk. Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions. <\/p>\n
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Bitcoin price might not rally after halving event, JPMorgan says - Quartz<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" This years Bitcoin halving event will be different than past ones, as the top cryptocurrency might actually lose value in the aftermath instead of rallying. Continue reading