Goldman Sachs On Bitcoin Halving: ‘It doesn’t Matter If It’s A Buy The Rumor, Sell The News Event’
19 April 2024 - 5:30AM
NEWSBTC
Analysts at Goldman Sachs, a leading global banking and investment
management firm, have offered valuable insights into the
anticipated effects of the forthcoming Bitcoin halving, on the
price of the cryptocurrency. They emphasize that while the Bitcoin
halving is a noteworthy event, other major factors will likely
exert greater influence on Bitcoin’s future value. Bitcoin
Halving To Play Lesser Role In BTC’s Outlook In a note to clients,
Goldman Sach’s analysts have cautioned against reading too much
into the past Bitcoin halving cycles and their impact on the
cryptocurrency. Based on historical trends, the Bitcoin halving
cycles tend to have a favorable effect on the value of Bitcoin,
often triggering a bull run. The bank noted that whether the
Bitcoin halving scheduled for April 20, becomes a “buy the rumor,
sell the news event,” it would hold less significance for the
cryptocurrency’s medium-term outlook. They argue that the future
performance of the pioneer cryptocurrency would be more heavily
influenced by the supply and demand dynamics within the current
market. Additionally, the analysts highlighted that the growing
interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs)
combined with the self-reflexive nature of the crypto market would
be the primary contributing factor to Bitcoin’s price action and
future outlook. Sharing a similar perspective, analysts at
CryptoQuant disclosed earlier in April that the 2024 Bitcoin
halving was no longer a primary catalyst for Bitcoin’s bullish
surge. They highlighted that factors such as increasing demand from
large-scale investors and diminishing supply were now the key
drivers of Bitcoin’s upward momentum. Analysts Warn Of
Macroeconomic Influence On New Halving Cycle Analysts at Goldman
Sachs have predicted that macroeconomic factors such as inflation
could have a significant influence on the upcoming Bitcoin halving
event. “Caution should be taken against extrapolating the
past cycles and the impact of halving, given the respective
prevailing macro conditions,” Goldman Sachs analysts noted. Related
Reading: Crypto Analyst Says Don’t Buy Altcoins Just Yet – Here’s
Why Unlike previous halving cycles, the present economic conditions
display high inflationary pressures and interest rates, which could
cause the 2024 Bitcoin halving cycle to diverge from historical
patterns. In other words, the analysts have suggested that for
Bitcoin’s historical halving bull runs to occur, macro conditions
need to be supportive of investor risk-taking. Currently, the
United States faces challenges with high inflation, while interest
rates stand above 5%. These conditions may exert pressure on
Bitcoin’s market dynamics. However, despite the prevailing
circumstances, many see the digital currency as a formidable
inflation hedge and a beacon of hope against escalating
inflationary pressures. BTC price at $62,000 | Source: BTCUSD on
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