- Bitcoin price climbed to a high of $65,000 on Friday, hours ahead of the BTC halving event.
- Bitcoin halving countdown timer shows that the mining difficulty adjustment is 64 blocks away.
- Large holders and ETFs slow down their BTC acquisition and anticipate volatility around the halving.
Bitcoin (BTC) halving is a mining difficulty adjustment that halves the reward for mining a BTC block once every 210,000 blocks, which is roughly every four years. With the event less than 70 blocks away, BTC price has recovered from its Wednesday low below $60,000.
BTC price reached a high of $65,000 on Friday, covering lost ground as Bitcoin prepares for the halving event.
How Bitcoin price will react to the halving
Bitcoin price suffered nearly 20% decline from its new all-time high of $73,777 on March 14 to its April 19 low of $59,600. As the halving draws close, Bitcoin price recovered and made a comeback above $65,000.
Fortune reports that experts believe there may be an immediate “buy the rumor, sell the news” effect on price. Vetle Lunde, senior analyst at K33 Research, told Fortune that the compounding effect of the reduced BTC issuance takes months to materialize. Lunde, therefore, does not expect the halving to result in any meaningful rally, neither prior nor directly after the event.
Lunde’s opinion is backed by analysts at Deutsche Bank, who state that “Bitcoin halving is already partially priced in by the market and we do not expect prices to increase significantly following the halving event. The Bitcoin halving has been widely anticipated in advance due to the nature of the Bitcoin algorithm. Looking ahead, we continue to expect prices to stay high due to (i) expectations of future spot Ethereum ETF approvals; (ii) future central bank rate cuts; and (iii) regulatory changes,” per a recent report.
Large holders and ETFs slow down activity
Data from crypto intelligence tracker CryptoQuant shows a noticeable slowdown in the acquisition of Bitcoin by large holders and Exchange Traded Funds (ETFs). Market uncertainties and the upcoming structural changes from the halving have likely influenced institutions.
Bitcoin demand from accumulation addresses and ETFs
Bitcoin price is $64,374 at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AAVE proposes a slew of upgrades and expansions in plan for 2030
Aave has proposed a Unified Liquidity Layer, V4, and solutions to enhance and compete with zero-knowledge networks in its plan for 2030 and beyond. The proposal states that Aave aims to implement its plan together with the community within the next three years.
Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Recovery likely if Bitcoin freefall ends
Meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) look primed for recovery, according to technical indicators, despite the broader crypto market correction prompted by the sharp drop in Bitcoin (BTC) price.
XRP tests $0.52 resistance while XRP Ledger developers propose lending protocol on the blockchain
Ripple has failed to close above $0.52 for five consecutive days, struggling with the sticky resistance. XRP holders digested the news of US Securities and Exchange Commission’s response to Ripple in its filing that addressed the issue of “expert testimony.”
Pepe whales buying spree could trigger 55% rally Premium
Pepe price shows signs of a potential comeback as it retest the a declining resistance level. A successful breakout could kick-start a 56% move to the upside as whales continue to accumulate on dips.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.