Kaiko asserts that Bitcoin’s halving will have no impact on price for the coming 18 months.
Analysts at Kaiko suggest that Bitcoin’s upcoming halving event may not have a significant impact on the cryptocurrency’s trajectory in the next 12-18 months. Despite earlier expectations that the decrease in miners’ rewards would drive Bitcoin’s growth, the Paris-based blockchain firm’s research report indicates that the primary catalyst for price increase will be attracting new investors, particularly through spot exchange-traded funds (ETFs) in the U.S. and soon in Hong Kong. This highlights the growing acceptance of Bitcoin in mainstream finance.
The analysts note that this halving event is taking place in a high-interest rate environment, which means there is no precedent for how Bitcoin will perform in the long run. According to Kaiko, the availability of robust liquidity and increasing demand will be crucial in enhancing Bitcoin’s value proposition in the coming months.
It is important to consider that the traditional post-halving price surge pattern may deviate this time due to various factors, including the condensed nature of the price cycle surrounding this halving event. Unlike previous cycles, Bitcoin has already experienced significant price increases, reaching new record highs before the halving, including a peak at $73,750 in mid-March.
CryptoQuant has also reported that despite the halving, miners have maintained their pace of operations, indicating their confidence in Bitcoin’s future despite the changes in rewards.
