Crypto traders are eagerly anticipating the upcoming Bitcoin halving event as a potential catalyst for a price spike, but according to cryptocurrency exchange Coinbase, the time of year may pose a challenge. In its recent market commentary report, Coinbase explained that the crypto market will need to find another narrative to drive prices higher.
The BTC halving, scheduled for April 20 or 21, could lead to higher prices, but it will have to contend with the historically weak period for crypto markets and other risk assets. Data from digital assets research firm Brave New Coin shows that Bitcoin has typically seen lower returns from June to September, compared to the rest of the year.
Despite the slowing crypto volumes, Coinbase sees signs of new investors entering the market, particularly due to Bitcoin’s growing acceptance as a form of “digital gold.” The exchange believes that this could lead to increased demand from a new subset of investors.
Bitcoin’s dominance in the overall crypto market is currently at 50.6%, according to CoinStats data. Coinbase also noted that as more investors enter the market, price declines may be less severe, with dips likely to be aggressively bought.
Halving events have historically been associated with price spikes in Bitcoin. Following the previous halving event in May 2020, Bitcoin’s price surged from $8,787 to nearly $69,000 in November 2021.
In related news, Coinbase recently won a lawsuit over crypto transactions, with the United States Court of Appeals ruling in favor of the exchange. The court confirmed that secondary sales of cryptocurrencies on Coinbase’s platform do not violate the Securities Exchange Act, dismissing claims that the exchange was offering unregistered securities.
Overall, despite the challenges posed by the time of year, many crypto traders remain optimistic about the potential for a price spike following the Bitcoin halving event. With new investors entering the market and growing acceptance of Bitcoin, the stage is set for an exciting period in the world of cryptocurrency trading.