Half-life of Bitcoin, precedent is not a criterion: Coinbase | CoinDesk JAPAN | Coin Desk Japan

The next Bitcoin (BTC) halving, expected in Q2 2024, could have a positive impact on the performance of this cryptocurrency, but it is unpredictable, according to Coinbase. Coinbase) said in a June 14 report.

“To get a clear picture of how the market has reacted to past Bitcoin halvings, we need to separate the effects of liquidity, interest rates and the movement of the US dollar,” said analyst David Duong. writes.

The block reward halving is often viewed positively as it increases Bitcoin’s “future scarcity” and supports its supply and demand dynamics, the report said. When the Bitcoin halving occurs, the reward will be cut by 50%.

But with only three halving events recorded in the past, there is limited evidence on how the market will react, the report adds. Especially since these events are “tainted by factors such as global liquidity measures,” it is difficult to see a clear pattern.

Coinbase says that global liquidity appears to have peaked in the short term, and with the next halving still nine to 10 months away, it is unclear what the net impact on Bitcoin price action will be. It is.

Demand for the biggest crypto asset is likely to remain strong before the event, according to Wall Street giant JPMorgan.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Bitcoin Halving History Provides Little Guidance on Outcome: Coinbase