Bitcoin Halving Imminent: Will BTC Price Show a New Trend in 10 Days?
Bitcoin’s upcoming halving event is generating significant interest among the crypto community. In the past, halvings have consistently triggered bull markets, but their impact seems to be diminishing over time. Nonetheless, analysts predict that the next halving will still have a substantial effect on the Bitcoin market. However, there is speculation that this halving event may bring about a different trend for Bitcoin.
One factor that could influence the outcome of the halving is the involvement of institutional investors. In January 2024, the US Securities and Exchange Commission approved 11 spot bitcoin ETFs, marking a significant milestone for the crypto industry. This approval indicates the evolution of crypto assets from a niche interest to a legitimate alternative asset class that is attracting attention from major asset managers worldwide.
Now, as the community awaits the fourth Bitcoin halving, there is anticipation for increased market activity, as seen in previous halvings. However, this time there is a notable difference. Private wealth, family offices, and major traditional financial institutions are starting to incorporate crypto into their investment portfolios and offerings. This departure from previous industry norms suggests that the aftermath of this halving will diverge from previous patterns.
In the lead-up to the previous Bitcoin halvings, the cryptocurrency typically experienced a surge in price followed by a subsequent decline. However, the upcoming halving has disrupted this trend. Bitcoin reached a price peak of over $70,000 just before the halving, marking the first occurrence of such an event in its history.
The question now is whether the halving will attract demand from institutional investors. Historically, when Bitcoin’s supply decreases due to a halving, people rush to buy in anticipation of a price increase. This is happening again, with Bitcoin recently reaching a new high. However, the difference this time is the involvement of professional investors who were previously uncertain about Bitcoin. The market has become more serious, and there is a possibility that big investment firms and funds, such as those dealing with ETFs, will enter the crypto space.
The trend is evident as institutions have been increasing their Bitcoin holdings, which have grown by 13.4% from 2020 to 2021. In 2023, the excitement surrounding institutional Bitcoin products and the potential for an ETF sparked a rally, with $2.25 billion invested in digital assets that year alone. Professional investors are becoming a powerful force in the market.
Considering the involvement of institutional investors, it is possible that the sharp price drops typically seen after halvings may not occur this time. These investors may provide stability and support for Bitcoin’s price, potentially leading to a different outcome for the cryptocurrency following the halving.