Bitcoin Halving: Don't Expect Rapid Gains Just Yet, Says JPMorgan
Halving Event May Lead to Price Weakness
The highly anticipated bitcoin halving event has arrived, but investors should not expect an immediate surge in prices, according to a recent report from JPMorgan Chase & Co.
The halving, which occurs roughly every four years, reduces the number of new bitcoins created with each block by half. This event is designed to control inflation and ensure the scarcity of the cryptocurrency.
Price Dip Likely
JPMorgan analysts believe that the halving may actually lead to a short-term decline in the price of bitcoin. They argue that the sell-off in the lead-up to the event, as investors locked in profits, will continue in the aftermath.
However, the report also notes that this price drop could be an opportunity for investors to buy bitcoin at a lower price. They predict that the long-term fundamentals of bitcoin remain strong, and that the halving could ultimately be beneficial for the cryptocurrency.
Historical Precedent
The analysts point to the 2012 halving as an example. After that event, the price of bitcoin initially dropped by about 50%, but then rallied over 1,000% in the following months.
It is important to note that past performance is not a guarantee of future results. However, the historical precedent suggests that the halving could be a bullish event for bitcoin in the long run.
Comments