Goldman Sachs On Bitcoin Halving: ‘It doesn’t Matter If It’s A Buy The Rumor, Sell The News Event’

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Goldman Sachs analysts have shared their perspectives on how the upcoming Bitcoin halving might impact the digital currency’s price. They point out that this event is significant but that other more powerful influences are expected to determine Bitcoin’s future worth.

Bitcoin Halving To Play Lesser Role In BTC’s Outlook

Goldman Sachs analysts have advised clients in a recent communication not to place excessive faith in past Bitcoin halving events when predicting its future price movement. While it’s true that these cycles have historically led to positive outcomes for Bitcoin, resulting in significant price increases or “bull runs,” it doesn’t guarantee the same outcome every time.

The bank pointed out that the anticipated Bitcoin halving on April 20th might lead to buying beforehand and selling afterward, but its impact on Bitcoin’s long-term perspective would be minimal.

The experts believe that Bitcoin’s future value will mainly depend on the market’s supply and demand balance. Furthermore, they point out that the increasing popularity and anticipation for Spot Bitcoin ETFs, as well as the crypto market’s self-referential behavior, are expected to significantly impact Bitcoin’s price trends and forecasts.

According to CryptoQuant’s analysts, who hold a comparable viewpoint, the upcoming 2024 Bitcoin halving is no longer the main reason for the cryptocurrency’s price increase. Instead, they pointed out that growing interest from large investors and decreasing supply are currently fueling Bitcoin’s market uptrend.

Analysts Warn Of Macroeconomic Influence On New Halving Cycle

Experts at Goldman Sachs believe that economic conditions, particularly inflation, may strongly impact the bitcoin halving due soon.

It’s important to exercise caution when applying past trends and the effects of halving to current situations, considering the different macroeconomic conditions that exist now. (Goldman Sachs analysts advise)

Instead of following the typical pattern seen in past Bitcoin halving events, the current economic scenario is marked by elevated inflation and borrowing costs. Consequently, some experts believe that the 2024 Bitcoin halving cycle could deviate from historical trends due to unfavorable macroeconomic conditions for increased investing risk.

In the present scenario, the US is grappling with rising inflation rates, even as interest rates hover above 5%. These economic conditions could impact Bitcoin’s market behavior. Nevertheless, some view the digital currency as a robust hedge against inflation and a potential source of relief amidst increasing price pressures.

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2024-04-18 22:34