Just 1 and a half days away from the highly anticipated Bitcoin HalvingThe crypto community is abuzz with speculation about its potential impact on prices. As the countdown continues and There are less than 250 blocks left to mineCoinify CEO Rikke Staer suggests that it’s possible to “buy the rumor and sell the news” for this halving. However, others believe that this slowdown could signal a recession before a significant price rally.
Approaches to Bitcoin Halving
According to Coinify CEO, the halving of miner rewards cuts less efficient mining operations in half and could become unprofitable. “These miners could be forced to sell their existing assets. Bitcoin assets to cover electricity costs, equipment maintenance and other operational expenses.
Staer also mentioned that Bitcoin’s price response in the future Halving may not happen immediatelyHistorically, significant growth after a halving occurs over a 6-18 month period, and large price movements become less likely as the market grows.
He also noted that replicating the massive gains seen during previous halvings could be difficult due to the larger size of the Bitcoin market today.
Also read: Bitcoin Price Moves Above Important Support; Time to Buy BTC?
Sell the rumor, sell the news?
At the same time, the concept of “sell the rumor, sell the news” has gained traction in the crypto community, with some anticipating a price drop after the halving. Interestingly, the approval of U.S. bitcoin spot exchange-traded funds (ETFs) was also expected to trigger a “sell the news” event.
However, the actual launch of BTC Spot ETF defied expectations, looking more like a “rumor sell-off” scenario. This unexpected turn saw bitcoin prices surge to record highs once ETFs began trading and accumulating BTC.
Large BTC whales are very good at selling on rumors, potentially dumping their holdings ahead of anticipated price drops to lock in profits ahead of any potential downturn. Bitcoin actions Whales can significantly influence market sentiment, causing fear, uncertainty and doubt among small investors.
Learn more: Bitcoin Price Expected to Drop Further Before Hitting New High After Halving
Community Reaction
JPMorgan analysts recently made headlines by predicting a potential BTC price drop to $42,000 after the halving. Even BTC bull and former Bitmex CEO Arthur Hayes, anticipated a “crisis” in BTC prices around the halving.
Additionally, some observers have called the halving a “news sell-off” event, where crypto assets often drop after positive news releases. As the halving approaches, uncertainty looms large in the market. While some anticipate a “news sell-off” event, others remain optimistic about Bitcoin’s long-term prospects.