Bitcoin Halves to Struggle With ‘Weakest Time of the Year’ – Coinbase
Many crypto traders are looking at the Bitcoin halving event as a major driver of price increases, but the timing of the year will be a hindrance, according to cryptocurrency exchange Coinbase.
The crypto market needs to find another narrative to drive value across the board, Coinbase said in its April 5 market opinion report.
“Currently, the BTC halving due on April 20 or 21 may be an indication of higher prices, but it has to contend with what is typically a weak year for crypto markets and other risk-adjusted assets,” he said.
Bitcoin (BTC) has typically seen a monthly return of about 2.7% from June to September since 2011, with an average return of 19.3% in the other eight months, data from digital assets research firm Brave New Coin shows.
Meanwhile, Coinbase said overall crypto volumes “continue to slow as the market tries to find the next narrative to push it higher.”
According to CoinMarketCap data, the total amount of crypto in the last 24 hours was 61.78 billion dollars, a decrease of 33.25% compared to the previous day.
However, the crypto exchange sees signs of an increase in new investors entering the crypto market in the near future.
“In our view, the adoption of Bitcoin as ‘digital gold' could generate interest from a new set of investors in this market regime.”
According to CoinStats data, Bitcoin's dominance in the entire crypto market is 50.6%, which is the market capitalization of Bitcoin relative to the overall crypto market.
In addition, the report explained that the pools are likely to shrink as investors who wait for price reductions to invest participate.
“As a result, we think the dips may be bought more aggressively compared to previous cycles, although volatility will continue during price discovery,” Coinbase wrote.
Half of the events are associated with frequent spikes in Bitcoin's price.
After the last halving event in May 2020, the price of Bitcoin increased. Starting at $8,787 during the halving, the cryptocurrency has soared, reaching $69,000 by November 2021.
RELATED: Coinbase Cleared of Allegations of Crypto Transactions.
On April 6, Cointelegraph reported that the United States Court of Appeals for the Second Circuit supported Coinbase, confirming that the secondary sale of cryptocurrencies on the platform does not violate the Securities Exchange Act.
The plaintiffs argued that Coinbase was offering and selling unregistered securities. They also alleged that the exchange violated various securities laws.
However, Coinbase argued that the secondary sale of crypto assets did not meet the criteria for a securities transaction, disputing the relevance of securities regulations.
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