[NEWS] Bitwise analyst says impact of Bitcoin halving is "underestimated"

Analysts at Bitwise, a US cryptocurrency investment company, said they believe the price fluctuations after the Bitcoin (BTC) halving are "underestimated."

The analysts analyzed the short-term and long-term impacts of the halving on the price of Bitcoin.

First, they point out that traditionally, the Bitcoin price in the month following the halving has not shown a positive situation. However, they explained that the Bitcoin price has increased by three digits within one year after the halving.

In their report, Bitwise stated that "Historically, halvings have been beneficial to the Bitcoin price in the long term," and described the trend of Bitcoin prices in the year following the halving as follows:

• 2012: 8,839%
• 2016: 285%
• 2020: 548%

They also stated that the Bitcoin price in the month following the halving has trended as follows:

• 2012: 9%
• 2016: -10%
• 2020: 6%

Although these data are "still limited," the report noted that "the graphs show an interesting pattern. The current market price reflects the short-term impact of the halving, but its long-term impact is underestimated."

One of the factors behind this trend is the reduction in Bitcoin supply due to the halving. "Bitcoin prices will soar, inflation will fall, and price increases will be promoted."

On the other hand, the report also states that "the direction of Bitcoin prices may be influenced by trends in the global economy, changes in regulatory conditions, and developments in blockchain technology."

Reference:Report
Image: Shutterstock

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