The leading US cryptocurrency platform, Coinbase Institutional, has released a primer for investors ahead of Bitcoin’s fourth halving in mid-April. The halving occurs every four years or after mining 210,000 blocks, cutting miner rewards from 6.25 to 3.125 bitcoin per block at the 840,000 block mark.
The primer is designed to guide institutional investors by analyzing past halvings’ impacts and recent cryptocurrency market developments, like Bitcoin ETFs and its record-breaking climb before halvings.
Historically, Bitcoin has seen significant value spikes post-halving. The first halving saw a 139% rise in six months pre-event and a whopping 923% in the following six months.
Coinbase’s analysts note Bitcoin’s recent 157% rise since October, hinting at potential further growth. However, they caution that the halving’s impact is speculative due to limited historical data.
The report also considers macroeconomic factors like Federal Reserve rate cuts and long-term holder behavior, suggesting a lessened impact on selling during halvings. Challenges like increased miner selling and companies facing bankruptcy are also mentioned.
Coinbase Institutional’s primer indicates cautious optimism for Bitcoin’s fourth halving, citing historical value surges post-halving despite speculative impact due to limited data and potential challenges like increased miner selling.
