Analyst Compares 2024 Halving To 2020 Halving, Gives Two Cents About Bitcoin Death Spiral Myth

The post Analyst Compares 2024 Halving To 2020 Halving, Gives Two Cents About Bitcoin Death Spiral Myth appeared first on Coinpedia Fintech News

The big Bitcoin halving event happened recently, but it wasn’t a big show. On April 19, 2024, the reward for Bitcoin miners was cut in half, going from 6.25 BTC to 3.125 BTC per mined block. Surprisingly, there weren’t any celebrations and Bitcoin’s price stayed pretty steady at around $64,000. Analyst Casey has opened up about what happened in the next few months after the last halving in 2020.

In a new video, the analyst took a look into the aftermath of the previous Bitcoin halving, which occurred on May 11th, 2020. Analyzing the price chart on a weekly basis alongside the money line indicator, she pinpointed the precise moment when the trend transitioned from bearish to bullish. In the ensuing weeks, Bitcoin’s price showed a sideways movement within the range of $8,500 to $12,000. 

It wasn’t until mid-October 2020 that the price surged, culminating in a staggering all-time high of approximately $69,000 by November 2021. Subsequently, the market sentiment flipped bearish, leading to a prolonged bear market until January 2023. Since then, Bitcoin has been on an upward trajectory, punctuated by minor bearish phases, with the current price hovering around the $60,000 mark.

Moving forward, the analyst explored the factors that distinguish the current scenario from previous cycles. Notably, Bitcoin reached a new all-time high of around $73,000 before the halving, a phenomenon unprecedented in prior cycles. Moreover, the influx of big institutions into the crypto space, along with geopolitical shifts away from the US dollar, presents new dynamics that could influence Bitcoin’s trajectory.

The analyst then addressed the Bitcoin death spiral myth, debunking it by explaining the network’s resilience and the diversity among miners. Despite challenges faced by individual miners, the network’s self-adjusting difficulty mechanism ensures its continued operation.

Looking ahead, she speculated on potential scenarios, anticipating a decrease in Bitcoin dominance and a rotation of capital into altcoins. She predicted a shorter and more compressed altcoin season, driven by increased institutional involvement and market awareness.