Key Points
- The upcoming Bitcoin halving may not trigger a significant bull run over the next 12-18 months.
- Bitcoin’s value growth is anticipated to rely on attracting new investors, particularly through spot ETFs in the U.S. and Hong Kong.
Analysts predict that the upcoming fourth Bitcoin halving may not have a substantial impact on the cryptocurrency’s direction in the next 12-18 months.
Bitcoin Halving and Market Impact
The Paris-based blockchain firm, Kaiko, in a recent research report, suggests that the reduction in miners’ rewards from 6.25 BTC to 3.125 BTC may not be the primary driver for Bitcoin’s growth.
The report suggests that Bitcoin may not yield massive returns following this halving, as the asset class matures and macroeconomic conditions remain uncertain.
Attracting New Investors
Analysts believe that Bitcoin’s future price largely depends on attracting new investors. This is especially through spot exchange-traded funds (ETFs) in the U.S. and soon in Hong Kong, demonstrating the cryptocurrency’s increasing acceptance in mainstream finance.
This is the first halving to occur in a high-interest-rate environment, and analysts note that there is no precedent for how Bitcoin will trade long-term.
Kaiko suggests that robust liquidity and growing demand will play a vital role in enhancing Bitcoin’s value proposition in the coming months.
The traditional post-halving price surge pattern may deviate due to various factors, including the condensed price cycle surrounding this halving event.
Unlike past cycles, Bitcoin has already seen significant price increases, reaching new record highs before the halving, including a peak at $73,750 in mid-March.
