Bitcoin may face a 40% drop as halving approaches, analyst warns By Investing.com
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Crypto analyst Rekt Capital has issued a warning about a potential steep decline in ‘s value in the lead-up to the cryptocurrency’s next halving event in April 2024. Drawing on historical patterns observed during the 2016 halving period, the analyst suggested that Bitcoin could experience a post-pre-halving rally drop similar to what happened in 2016.
The analyst, who commands the attention of over 370K followers, pointed out that if Bitcoin follows the trajectory of the past halving cycle, its value could plummet by as much as 40%. This would mean that Bitcoin, which is currently trading at $37,341, could see its price fall to around $22,500.
The prediction is based on the behavior of Bitcoin’s price during previous halving events, which occur approximately every four years and reduce the rewards miners receive for adding new blocks to the blockchain by half. The upcoming halving is expected to decrease miner rewards again, potentially impacting the supply and demand dynamics of Bitcoin.
Investors and traders are keeping a close eye on these forecasts as they have historically been associated with significant price volatility. Rekt Capital has encouraged followers to subscribe for email alerts to stay informed about future predictions and updates on cryptocurrency market movements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters
Crypto analyst Rekt Capital has issued a warning about a potential steep decline in ‘s value in the lead-up to the cryptocurrency’s next halving event in April 2024. Drawing on historical patterns observed during the 2016 halving period, the analyst suggested that Bitcoin could experience a post-pre-halving rally drop similar to what happened in 2016.
The analyst, who commands the attention of over 370K followers, pointed out that if Bitcoin follows the trajectory of the past halving cycle, its value could plummet by as much as 40%. This would mean that Bitcoin, which is currently trading at $37,341, could see its price fall to around $22,500.
The prediction is based on the behavior of Bitcoin’s price during previous halving events, which occur approximately every four years and reduce the rewards miners receive for adding new blocks to the blockchain by half. The upcoming halving is expected to decrease miner rewards again, potentially impacting the supply and demand dynamics of Bitcoin.
Investors and traders are keeping a close eye on these forecasts as they have historically been associated with significant price volatility. Rekt Capital has encouraged followers to subscribe for email alerts to stay informed about future predictions and updates on cryptocurrency market movements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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