Will the Impact of Bitcoin Halving Have an Effect on BTC Price? Here’s What You Need to Know

The post Will the Impact of Bitcoin Halving Have an Effect on BTC Price? Here’s What You Need to Know appeared first on Coinpedia Fintech News

The crypto space celebrated the successful completion of the 4th Bitcoin halving, just a few moments before. With this, the BTC price regained some strength; it raised above $64,200, but it turned out to be a short-lived rally. The price quickly plunged below the levels but is sustaining itself within the bullish range. Therefore, it appears that the halving impact could have started to loom but on the other hand, it may also be too early to decide. 

The BTC price has remained largely stagnant before and after the halving event, which previously included a couple of pullbacks. Hence, the token appears to be following a similar pattern and could remain within a compressed range for a while. Despite the halving, nothing appears to have changed to a large extent, as the volume has dropped by over 30%. This minimal impact after several days of volatility has raised concerns over its impact in the coming days. 

Apart from halving, other factors like geopolitical factors, money policy, etc., and many more are expected to have a larger impact. Therefore, according to one of the popular analysts, Stockmoney Lizards, the effect of the halving will not kick in immediately. When can we expect a sharp upswing in the BTC price?

The recent pullback appears to have changed the market dynamics as the open interest and premium have reset. Besides, the COT data, which shows the aggregate holdings of different participants, also appears to be pretty decent. Therefore, if the BTC price records a bullish close for the day, the markets may gain some momentum in the coming week.

Also Read : Bitcoin Halving Triggers Price Surge Bets: Will BTC Hit $100,000? 

The Bitcoin halving has not only offered the required momentum to the BTC price but has also elevated the share value of the mining companies. Just before the halving, the stock investors speculated on the performers of the various mining companies which led to a significant rise in the share price. The block reward could force the miners to rework their strategies to maintain profitability after the reduction of rewards. This may change the trading dynamics as the influx of BTC may increase from now on, which may largely impact the BTC price rally.