Bitcoin halving is one of the most awaited events for the entire digital asset industry as it resulted in a significant spike in the price of digital gold. But a point in the middle between the last halving and the next halving — the so-called “middle halving” may not be very bullish for the market.
“The last Bitcoin halving occurred in May 2020. After surges, price tops historically occur 515 to 545 days after BTC’s supply is cut in half, causing more scarcity. Next week we’re due for a mid-halving event. Read about what historically happens!”, Santiment reported.
🤑 The last #Bitcoin halving occurred in May, 2020. After surges, price tops historically occur 515 to 545 days after $BTC‘s supply is cut in half, causing more scarcity. Next week we’re due for a mid-halving event. Read about what historically happens! 👀 https://t.co/qvBoQHfxhL pic.twitter.com/eTp9cDNgoO
Santiment’s live feed highlights each point between halvings the market has seen. According to the chart, each halving event is marked by a local price peak, after which the value of Bitcoin decreases until the next halving.
According to Santiment, the market still faces a correction between the following two sessions. The company’s analysis is based on data from previous cycles in which BTC struggled to break through key resistance levels, entered a period of growth, and was active in general.
The experts also noted that it remains unclear whether Bitcoin will follow the same pattern as before, as it remains within a local uptrend that began in mid-March.
Online analyst Willy Woo noted that the halving might no longer have the same impact on markets and the industry due to the massive institutional capital outflows we saw in 2021.
Hypothetically, Bitcoin is no longer a pure retail asset promoted by smaller investors. Much of Bitcoin’s price performance is concentrated in the hands of major financial institutions and projects like the Terra Foundation, which has purchased $1 billion worth of BTC since January alone.
Given the growing share of institutional funds in Bitcoin’s circulating supply, the halving may no longer have the same effect.