According to Kaiko Research, cryptocurrency investors hoping that bitcoin’s next halving event will spark a price increase may be disappointed.
Bitcoin has been stalled under $30,000 for several weeks, but previous catalysts for its surge may not work this time, according to Kaiko Research on Monday.
Bitcoin halving is a procedure in which a block reward is provided to crypto miners every 210,000 blocks mined, or roughly every four years. The cryptocurrency has seen three halvings in its lifetime, with the next one likely in April or May of next year.
The price of bitcoin has typically increased months after halvings, however the rallies have gotten less over time as the cryptocurrency market has matured, according to analysts at Kaiko.
Prior to previous halvings, BTC experienced tremendous volatility in the months preceding the event. However, there hasn’t been a significant increase in leverage or transaction volumes so far, which may imply that traders aren’t significantly positioning for the forthcoming halving at this stage, according to the analysts.
According to data, Bitcoin has gained more than 70% this year but is still down about 60% from its all-time peak in 2021.
Meanwhile, halvings may not always result in an increase in the price of any cryptocurrency, according to the analysts.
Last week, another cryptocurrency, Litecoin, experienced a halving occurrence. However, contrary to many investors’ predictions, the coin has dropped by more than 10% since August 2, when the halving was completed.
Analysts at Kaiko remarked that Litecoin performed in line with the broader crypto market or lagged after its prior halvings in 2015 and 2019.
This shows that Litecoin price halvings have been ‘buy the rumours, sell the news’ events rather than important market triggers, according to the analysts.
