The Bitcoin halving will not trigger a sustainable uptrend over the next 12-18 months, relying on new investors via spot ETFs in the US and Hong Kong.
According to Kaiko analysts, the highly anticipated fourth Bitcoin halving is expected to have a less significant impact on the cryptocurrency’s trajectory over the next 12 to 18 months. Contrary to earlier expectations, the decrease in miner rewards from 6.25 BTC to 3.125 BTC may not serve as the main catalyst for Bitcoin’s growth, according to a recent research report from the Paris-based blockchain company.
“He [Bitcoin] may have enjoyed massive returns following its previous halving, but the latest event comes as the asset class matures and macroeconomic conditions remain uncertain.
Kaiko
This time, analysts say the future price of Bitcoin depends on attracting new investors, including through spot exchange-traded funds (ETFs) in the United States and soon in Hong Kong, showing the growing acceptance of cryptocurrency in traditional finance.
Given that this is the first time a halving has taken place in a high interest rate environment, analysts say “there is no precedent for how Bitcoin will trade at long term “. According to Kaiko, robust liquidity and growing demand “will play a crucial role in improving Bitcoin’s value proposition in the months to come.”
As crypto.news detailed earlier, the traditional pattern of price rise after halving may experience a deviation this time due to various factors, including the condensed nature of the price cycle surrounding this halving event . Unlike previous cycles, Bitcoin has already seen significant price increases, reaching new record highs before the halving, including a peak at $73,750 in mid-March.
