Publication date: April 5, 2024
What is halving and what can you do with it right now?
The media surrounding the crypto markets have been full of "halving" for ages and, of course, the already introduced ETF. What can you do with that at the moment?
What is all the hype surrounding halving about?
The "halving" means that the fee for BitCoin miners is halved. This makes it unprofitable for the smaller miners to mine BitCoins since the cost of electricity in particular is high and even increasing. The result is less supply of BitCoins. Consequently, if demand remains the same, the price will rise. This happened the same way in the previous three "halvings. We will set aside the initial two "halvings" for now, as the crypto market landscape during that period differed from the past five years.
As indicated by the red arrow in the graph below, we witnessed the impactful "halving" event in May 2020, leading to a market explosion. Anticipating the next "halving" around April 20, 2024, many BitCoin investors have already fueled a substantial price increase in anticipation of this significant event.
In addition, this rise has also been prompted by the SEC's approval to operate a BitCoin ETF. This allows one to invest in BitCoin through an officially regulated product. This has caused a huge inflow of funds and thus greatly supported the rise.
Both drivers of the rise have therefore long been known and incorporated into the price. Therefore, it appears that the excitement surrounding the "halving" event may have reached its peak. In other words; the "halving" is incorporated into the current price and everyone is eagerly waiting for the day of the actual "halving" (approx. April 20) but at the moment suprême the party is already over and virtually nothing happens. This triggers a selling frenzy, potentially causing BitCoin to plummet from $73,000 to $44,000.- Conclusion:
Note: As far as we are concerned, BitCoin has a glorious future and the trend is upward. But don't be fooled and don't walk behind the herd. Walk ahead of the troops!
The technical price pattern and the above give us a reason to reduce our position in BitCoin by at least 50% in the coming week.
The blue line in the chart is the first level to buy back in heavily. This is around $44,000.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
