Bitwise: Crypto market fails to fully grasp the lasting influence of Bitcoin halving

Bitwise Asset Management has stated that the price action following the Bitcoin halving event has historically been disappointing. In the month after the past three halvings, the price of Bitcoin dropped, but in the year that followed, it experienced significant gains. In 2012, Bitcoin gained 9% in the month after the halving and surged 8,839% in the following year. The same pattern occurred in 2016, with Bitcoin falling 10% after the halving and then gaining 285% to reach a peak of $20,000 in 2017. In 2020, Bitcoin saw a 6% price gain in the month post-halving and a 548% increase in the year that followed. Bitwise suggests that the market underestimates the long-term impact of the halving despite pricing in the short-term effects. This current market cycle is the first time Bitcoin has reached an all-time high before the halving event. The cryptocurrency hit a peak of $73,679 on March 13 but has since corrected to a low of $61,500. Industry executives are pessimistic in the short term, with predictions of a $5 billion miner sell-off after the halving, potentially putting pressure on the market. Some analysts suggest that market corrections could range from 18% to 30%, with the possibility of Bitcoin falling to around $51,000.