Is it worth investing before Bitcoin halving? – Price growth analysis

16 February 2024 | 15:47

The Price of Bitcoin Exceeds $52,000 – Is the Pre-Halving Frenzy Approaching?

Bitcoin, the largest cryptocurrency in the world, is once again capturing the attention of investors, reaching a value above $52,000. This rapid price surge has led many to speculate about the so-called pre-halving frenzy, related to the upcoming reduction in mining rewards on the Bitcoin network. Analysts are paying attention to the potential effects of this process, which has already significantly influenced market dynamics in the past.

Analysts Believe in the Pre-Halving Frenzy

According to Jag Kooner, the head of derivatives at Bitfinex, the current price movement in the cryptocurrency market aligns with a typical frenzy that usually starts about eight weeks before the halving date. Bitcoin is currently trading around $52,290, marking an increase of over 13% in the last 7 days.

Alternative Growth Levers

The decreasing selling pressure related to the conversion of GBTC Grayscale and consistent inflows into other investment funds (ETFs) further support the rise in Bitcoin prices. However, experts are concerned about relying solely on historical patterns, as the past does not guarantee repeatability in the context of market volatility.

Interesting Times for Altcoins

The growing interest in altcoins represents a unique aspect of the current pre-halving period of Bitcoin. Although the total cryptocurrency market has reached $2 trillion, this capital is not evenly distributed, primarily focusing on select sectors of altcoins.

Bitcoin Halving and Its Consequences

The next reduction in Bitcoin mining rewards, known as halving, is planned for April. This process will cut miners’ rewards by 50%, aiming to control the supply of new bitcoins. Since halving occurs approximately every four years, there is a speculation that the increased scarcity of this cryptocurrency may impact its value in the long term.