From Investing.com: 2024-04-15 08:47:26

As Bitcoin’s halving event approaches, Citi Research predicts a potentially less significant impact on price compared to previous cycles. The reward for mining new blocks will be halved, but historical data shows Bitcoin’s performance post-halving events has not been consistent in terms of price increases. The market may not witness the same big price jumps as before.

Citi Research highlights the key role of inflows into spot Bitcoin ETFs in driving Bitcoin’s price. $12.6 billion in net inflows have been recorded into these vehicles, leading to weekly price increases. However, overall cryptocurrency market engagement appears to be declining, as seen in reduced trading volumes and open interest metrics.

A contrast in network activity is observed between Bitcoin and Ethereum, with the latter experiencing increased network activity while Bitcoin’s activity remains subdued. This divergence in network performance may have implications for the two cryptocurrencies’ price movements and market dynamics.

Macroeconomic factors that previously influenced cryptocurrency movements are showing weaker correlations now. This suggests that investors may need to adjust their strategies when incorporating cryptocurrencies into their investment portfolios. This decoupling could signal a shift in the way cryptocurrencies are affected by broader economic trends.

Search trends indicate that public anticipation for the upcoming halving event is relatively low compared to previous events. This lack of heightened interest from the general public may result in less dramatic market movements following the halving. Investors should consider these factors when assessing the potential impact of the halving on Bitcoin’s price and market dynamics.

Read more at Investing.com: Does price always rise? Citi analyzes past trends By Investing.com