Bitcoin Halving Event Triggers Potential Selloffs: Here’s What Next For BTC Price

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The popular news of Bitcoin Halving has created a buzz of excitement and caution within the crypto community. Previously, this same event has been a forerunner of bullish trends in Bitcoin prices. But, the recent surge drove BTC to $73,000 in March. The U.S. Spot Bitcoin’s success drove it and thereby introduced new uncertainties.

Kris Marszalek, the CEO of Crypto.com has shared his perspective in a recent Bloomberg Television interview. He recognized the historical significance of Halving in long-term price appreciation but also has warned of potential short-term selloffs. He referred these sell-offs as the “buy-the-rumor, sell-the-news” pattern that is observed in financial markets. In spite of these short-term concerns, Marszalek has remained bullish about the positive and long-term implications about the Bitcoin (BTC) Halving.

Also read: Bitcoin Halving Prediction: Analyst Predicts Potential Low Levels for BTC Price

Potential Impact of Bitcoin Halving on Mining Rewards and Market Volatility

The event of Bitcoin Halving, set to occur later this week, will cut miners’ rewards from 900 to 450 Bitcoin on a per day basis. This adjustment is expected to reshape the ecosystem of crypto mining, with miners competing for reduced rewards. Over time, this event is expected to exert upward pressure on Bitcoin prices.

On the other hand, the immediate aftermath could see short-term volatility, driven by market speculation and trading sentiments. This volatility suggests the nuanced nature of the crypto market. Here, short-term fluctuations often exist simultaneously with long-term growth opportunities.

Perspectives of Analysists on BTC Price Fluctuations

Although Marszalek has placed his cautionary warnings, some analysts are of the view that the recent BTC price dip is a pre-retracement phase before the Halving event actually takes place. This perspective suggests that the market correction is actually part of a broader trend rather than solely influenced by impending selloffs. In fact, the recent approval of Hong Kong on Bitcoin and Ethereum ETFs has strengthened the sentiment of the crypto market.

Also read: Bitcoin Price Drops Ahead of Halving: Here’s What to Expect Next