According to Coinbase, the Bitcoin halving event may not necessarily lead to a significant price increase due to the weak time of year for crypto markets and other risk assets. Historically, Bitcoin has seen lower returns from June to September and higher returns in the other months. The overall volume of crypto trades has also been slowing down as the market searches for a new narrative to drive prices higher. Coinbase believes that the acceptance of Bitcoin as a digital gold could attract a new group of investors to the crypto market.
Currently, Bitcoin’s dominance in the crypto market is at 50.6%, indicating its market capitalization relative to the overall market. Coinbase predicts that future dips in Bitcoin’s price are likely to be aggressively bought, as more investors enter the market. Halving events, like the one expected in April, have historically led to price surges for Bitcoin. The previous halving event in May 2020 resulted in a significant rally, with Bitcoin reaching nearly $69,000 by November 2021.
In other news, Coinbase recently won a legal battle in the U.S. Court of Appeals. The court ruled in favor of Coinbase, stating that the secondary sales of cryptocurrencies on its platform do not violate the Securities Exchange Act. The plaintiffs had accused Coinbase of offering and selling unregistered securities and violating securities laws. Coinbase argued that these sales did not meet the criteria for securities transactions and contested the relevance of securities regulations.
The previous halving event had such a significant impact on Bitcoin’s price. 🌕
Who cares if Coinbase won a legal battle? That doesn’t change the fact that the market is in a slump.
The market needs a new narrative to drive prices higher? How about some actual gains for once? This is getting old.