The price dynamics of Bitcoin following the halving will adhere to the principle of “buy the rumour, sell the news.” This was stated by Coinify CEO Rikke Staer in an interview with The Block.
The executive explained her expectations by citing the increased presence of institutional investors and the growing experience of retail investors.
According to the expert, the halving of miners’ rewards will render certain mining equipment unprofitable for extracting digital gold.
“[Machine owners] will be forced to sell existing coin reserves to cover […] operational costs,” she explained.
The CEO of Coinify noted that at a certain point, the influx of bitcoins to exchanges from such market participants could exceed the volume of buy orders, leading to a price pullback.
“This could create a negative feedback loop, where falling prices force more miners to sell, exacerbating the decline,” Staer clarified.
According to the expert, the reaction to the event will not be immediate and will take several months, complicating a return to the rally observed since the beginning of the year rally.
“Historically, the main growth after a halving occurs within 6-18 months, and more significant price changes become statistically less likely as the market size increases,” she noted.
Earlier, Bernstein analysts confirmed a Bitcoin target of $80,000-90,000 and $150,000 at the peak in 2025.
In April, to mark the halving, the ForkLog team held the AllTimeHalf 2024 online forum featuring developers, entrepreneurs, enthusiasts, and visionaries. Recordings are available on the YouTube channel.
We also recommend exploring the event-related research by CoinGecko and Binance.