Leading cryptocurrency in Bitcoin While there is very little time left until the halving, investors are wondering about its impact on the price.
At this point, analysts say that halving BTC While we look at many data and models to predict the impact on price, past cycle data is most commonly used.
However Goldman Sachs warned its clients not to use historical cycle data alone to predict Bitcoin price.
According to Coindesk, Goldman Sachs analysts stated that the Bitcoin halving did not trigger previous bull runs on its own, and that macro factors probably played a role, and warned that this halving should not be expected to be effective alone in the rise of the price.
“Historically the previous three halvings have been accompanied by a rise in BTC price after the halving, but the time it takes for BTC to reach all-time highs varies significantly.
One should be careful about predicting the current cycle and the impact of the halving on Bitcoin price from past cycles. Because in every cycle, there were other catalysts in the BTC rally other than halving.
Because in past halving periods, the macroeconomic environment, today’s high inflation and high interest rate, was completely different.
In other words, for history to repeat itself for Bitcoin, macro conditions must also support risk taking in BTC.
But that is not the case today: Interest rates in the US, the world’s largest economy, are running above 5%, and markets have recently priced in hopes of a rate cut this year in light of sticky inflation and a resilient economy.”
Goldman Sachs analysts recently predicted a post-BTC halving next week “buy the rumor, sell the news” He stated that even if the incident occurs, this situation will have little impact on the medium-term outlook of BTC.
Because analysts state that the Bitcoin price will most likely continue to be driven by the supply-demand dynamic. “Continued demand for BTC ETFs, combined with the nature of crypto markets, will be a key driver of spot price movement.” said.
*This is not investment advice.
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