Bitcoin production was officially halved at 3 AM today, but its price trend was weak, and many investors took the opportunity to reduce their holdings. However, the trend of bitcoin halving in the past two times has been relatively repetitive, but both times rose to a high level after more than a year. Market participants believe that in the short term, they will still be affected by global market conditions, and prices will continue to fluctuate, but they are still optimistic about the trend in the long run.
According to the CoinMarketCap data, as of 5:30 PM, the price of bitcoin was $877.585, an increase of 1.6% over the past 24 hours, and the turnover was $58.795 billion. However, compared with the high of 9996.74 before the halving, it has fallen by 12.2%, reflecting that many investors took advantage of the situation before and after the halving and used the news to sell goods so that Bitcoin failed to break through the 10,000 dollar mark.
Huang Zhaoyu, the managing partner and chief operating officer of MaiCapital, pointed out in an interview with CoinsNetwork that the factor of halving Bitcoin has already been included in the market, and the price will drop after each halving. However, in the long run, the demand for Bitcoin will continue due to different macro factors. For example, the new crown pneumonia raged the world, the central banks of various countries introduced quantitative easing monetary policy, and everything was pushed to digital. These factors have the opportunity to increase people’s demand for Bitcoin and may push up its price.
At the same time, the environment during the past two halvings is quite different from the current one. The market is affected by the above-mentioned macro factors. Since the global market as a whole is still very volatile, it will continue to affect the price of Bitcoin. However, after short-term adjustments, he believes that there may be a good opportunity to buy Bitcoin or increase the asset allocation ratio.
Looking back at the price trend of Bitcoin halved twice in the past, it will take more than a year for its price to gradually rise to a high level. The price on November 28, 2012, was $12.22. At the time, on November 30, 2013, Bitcoin rose 94 times to $1,156.14. It then halved on July 9, 2016, to $657.61, and then on December 17, 2017, when the cryptocurrency market was quite prosperous, the price rose 29 times to $19,869.64.