Bitcoin Halving Event Optimism Falters with Risk-On Market Sentiment
The Bitcoin halving event, which was once anticipated with optimism, now faces a cloud of caution as risk-on market sentiment takes the spotlight. Analysts had previously predicted a post-event price surge, especially after Bitcoin surpassed its 2021 cycle high, reaching a new all-time high of over $73,000 in mid-March. This achievement attracted attention from both institutional and retail investors.
However, according to Bitfinex Head of Derivatives Jag Kooner, recent geopolitical tensions have dampened the enthusiasm surrounding the halving event. Following a de-leveraging event triggered by missile launches and drone attacks from Iran towards Israel, the market now experiences a more cautious sentiment.
Bitcoin Price Behavior Following the Halving
Coincover Head of Strategy Duncan Ash has pointed out that in the short term, prices are likely to soar post-halving until high values dissuade new investors from entering the market. This shift will rebalance the ratio of buyers to sellers, stabilizing the market. With more users, increased market capitalization, and improved liquidity levels, the industry is expected to evolve positively following the halving event.
On the other hand, Coinbase analyst David Han has warned investors not to overlook the possibility of a price correction post-halving. Despite indicators showing optimistic cyclical positioning and on-chain metrics pointing towards positive trends, the market still remains susceptible to downward movements, especially given the heightened volatility levels observed in the year so far.
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