Is the Bitcoin halving the right time to invest in BTC?

Bitcoin’s 4-year halving cycles are widely associated with the subsequent crypto market bull runs that generally lead to new Bitcoin all-time highs. But is the much-awaited halving the right time to invest in the world’s largest cryptocurrency?

Based on historical Bitcoin price data, the halvings could be a great time to buy for investors with longer time horizons, according to Vetle Lunde, a senior analyst at K33 Research. Lunde told Cointelegraph:

“While the immediate post-halving performance has tended to be sluggish, each halving has proven to be a solid point to enter the market. 150-400 days after the halving tends to be the sweet spot where the compounding effects of subdued miner selling pressure impact BTC positively directionally.”

Bitcoin breached the $60,000 mark for the first time in over two years on Feb. 28, 47 days before the halving, and the world’s first cryptocurrency is up 30% over the past week.

The Bitcoin halving halves the rate at which new BTC are issued into circulation every four years. The network will stop producing new Bitcoin once 21 million coins are created by the year 2140, which will be the year of the last Bitcoin halving.

BTC/USD year-to-date chart. Source: CoinMarketCap

According to Bryan Legend, investor and CEO of Hectic Labs, the pre-halving period can be a profitable time to hold Bitcoin. He told Cointelegraph:

“The pre-Halving leading up to the actual Halving event is a great time to realize gains. The pre-Halving rally turns investor sentiment into a new bull cycle but timing the market to know when to get out at the top is extremely challenging.”

Bitcoin’s pre-halving rally to the $67,611 mark was largely assisted by record inflows in the 10 new spot Bitcoin exchange-traded funds (ETFs) in the United States. 

According to CoinShares analyst James Butterfill, 

“Total assets under management (AuM), after recent price rises, are now very close to the all-time high at US $82.6bn, just shy of the US $86bn peak set early November.”

According to the report, Bitcoin accounted for “94% of the inflows” at $1.72 billion, as U.S.-based funds continued to…

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