Forbes Advisor analysts announced that the Bitcoin network halving took place “not with a bang, but with a whimper,” and the event, so anticipated by crypto investors, had virtually no effect on the price of the first cryptocurrency.
The event went unnoticed both for the crypto industry and the Bitcoin network itself.
“The block reward for miners has been halved, from 6.25 BTC to 3.125 BTC per block mined. However, you won't know this due to the lack of a pump.. No bells rang, no fireworks lit up the sky, and the price remained relatively stable at around $64,000,” says Forbes Advisor.
There is no clear direct relationship between halving and changes in the price of BTC; the value of the asset is now influenced by various market factors, experts say.
First, Bitcoin is historically sensitive to higher interest rates.. The US has so far failed to rein in inflation, and traders have begun lowering their expectations for a rate cut by the Federal Reserve (Fed) in 2024.
“The consumer price index data for March was higher than expected. Inflation over the past 12 months was 3.5%, which weakened expectations that any reduction in interest rates will occur in the first half of the year,” Forbes Advisor analysts recalled.
Secondly, “Bitcoin investors should closely monitor trading activity, as any large one-time sales or loud statements about the possibility of transactions by Bitcoin whales could negatively affect the level of short-term BTC prices and crypto market sentiment.”
“Although historically the price of BTC rose before and after previous halvings, the trajectory was not an upward straight line. Typically, after previous halvings, prices often pulled back before reaching a new peak around 220 and 240 days later,” explains Forbes Advisor.
Forbes Advisor predicts: the formation of a long-term upward price trajectory lies in the area of a shift in the dynamics of supply and demand. As the rate at which new Bitcoins enter circulation is cut in half, the built-in deflationary model will begin to take effect over time.
Now the price of BTC is testing the level around $66,100.
Earlier, analysts at the largest American cryptocurrency exchange Coinbase said that, according to their forecasts, the market price of Bitcoin and the development of the cryptocurrency market will depend on non-market factors. According to experts, the political situation in the world and within the United States will have a great influence.