Industry experts are challenging the long-held belief that Bitcoin's price performance is intrinsically linked to the cryptocurrency's quadrennial halving event.
Industry experts are challenging the long-held belief that Bitcoin's price performance is intrinsically linked to the cryptocurrency's quadrennial halving event.
"The halving no longer has a fundamental impact on the price of BTC and other digital assets, with the last time it had dating back to 2016," he said, adding: "It's time for founders and investors to move away from the notion of a four year cycle as digital asset markets mature."
This comes as Bitcoin experiences its worst price performance in the four months following its most recent block-reward halving.
Jasper De Maere, the Head of Research at Outlier Ventures, a Web3 accelerator, has spearheaded this reevaluation. According to his analysis, Bitcoin's price has not seen the same substantial, fundamental impact following the last three halving events as it did in 2016.
Notably, the expert observed that the foremost cryptocurrency is currently down around 8% in the 125 days following the most recent halving, a stark contrast to the previous epochs, which witnessed gains of 739%, 10%, and 22%, respectively.
De Maere argued that the halving's influence on the price of Bitcoin and other digital assets has diminished as the crypto market has matured and diversified.
He stated that the strongest case for the halving's impact is its effect on miners' treasury management, but even in an extreme scenario, this would account for only a small fraction of the overall market volume.
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