bitcoin
bitcoin

$95537.420395 USD

-3.38%

ethereum
ethereum

$3327.196609 USD

-4.02%

tether
tether

$0.999176 USD

0.01%

xrp
xrp

$2.162186 USD

-5.62%

bnb
bnb

$690.562432 USD

-1.63%

solana
solana

$188.795153 USD

-4.80%

dogecoin
dogecoin

$0.312951 USD

-5.37%

usd-coin
usd-coin

$1.000008 USD

0.00%

cardano
cardano

$0.861775 USD

-5.41%

tron
tron

$0.252078 USD

-2.00%

avalanche
avalanche

$37.556780 USD

-6.86%

toncoin
toncoin

$5.728630 USD

-4.01%

chainlink
chainlink

$22.698123 USD

-7.21%

shiba-inu
shiba-inu

$0.000022 USD

-5.49%

sui
sui

$4.200577 USD

-7.10%

Cryptocurrency News Articles

Bitcoin Risks Sell-Off After Halving Hype

Apr 20, 2024 at 01:17 am

Bitcoin faces a potential "sell-the-news" scenario after its halving event on Friday, as the market has already priced in the impact of this software modification. Analysts warn that the rally ahead of the halving suggests investors who wanted to buy Bitcoin for this event have already done so, indicating a possible sell-off post-halving.

Bitcoin Risks Sell-Off After Halving Hype

Bitcoin Faces Sell-Off Risk After Halving Event

As the highly anticipated Bitcoin halving draws near, experts warn of a potential "sell-the-news" market move, where the price of the cryptocurrency plummets after a significant event has passed.

This concern stems from Bitcoin's historical tendency to rally ahead of major industry milestones, only to experience a sell-off shortly after. Prominent financial institutions such as JPMorgan and Deutsche Bank have expressed their belief that the halving event is largely factored into the current price.

Joel Kruger, market strategist at LMAX Group, cautions that those who wanted to buy Bitcoin in anticipation of the halving have likely already done so. This suggests that after the halving occurs, we could witness a "sell-the-news" reaction.

The halving involves reducing the reward that Bitcoin miners receive for adding new blocks to the blockchain by 50%. It takes place approximately every four years and is intended to control the supply of new Bitcoin and maintain its scarcity.

Previous halving events have elicited mixed market reactions. In 2012, Bitcoin's price surged 70% in the months leading up to the halving but then fell 50% in the subsequent weeks. In 2016, the price jumped 60% before the halving but declined 40% afterward.

Analysts speculate that the halving's impact on Bitcoin's price will hinge on several factors, including macroeconomic conditions, investor sentiment, and regulatory developments. If the halving fails to meet or exceed market expectations, it could trigger a sell-off.

Some experts believe that Bitcoin's price will stabilize after the initial post-halving volatility. They argue that the halving's long-term impact is in reducing supply and strengthening the cryptocurrency's fundamentals.

However, others warn that a "sell-the-news" move could have a ripple effect on the broader cryptocurrency market, leading to declines in the prices of other digital assets. Investors are advised to approach the halving event with caution and to manage their expectations accordingly.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Dec 27, 2024