Amidst the volatility in the cryptocurrency market, focus has shifted to the upcoming Bitcoin halving event, known for historically causing significant price fluctuations. Industry experts are sharing their insights on the potential outcomes of this impending adjustment.
Expert Predicts Significant Price Changes
Bitwise CEO, Hunter Horsley, believes that the forthcoming halving could result in noteworthy price swings, particularly considering the current higher price of Bitcoin compared to the previous halving in 2020. The reduction in Bitcoin supply during this event is expected to have a substantial impact, potentially driving up Bitcoin's price. The halving is scheduled for April 19th.
Halving Impact in the Economic Landscape
During the last Bitcoin halving, significant monetary policy changes, such as interest rate cuts and quantitative easing by the Federal Reserve, occurred. Speculation is now arising around the potential influence of Bitcoin ETFs, active for about three months, on Bitcoin's price trajectory, similar to the Federal Reserve's actions. Horsley suggests that the broader economic context will play a crucial role in discussions surrounding this halving event.
Miners Prepare for Halving Consequences
According to a Hashrate Index report, if Bitcoin prices stay stable or experience moderate increases after the halving, approximately 3-7% of the Bitcoin hashrate could be decommissioned. This will result in adjustments to mining difficulty. On the other hand, a significant price drop could lead to a rapid increase in the offline hashrate. Miners are likely to focus on enhancing operational efficiency to manage volatility and risk post-halving, with profit margins expected to be tight in the short term.
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