1. PixelPlaygroundHome
  2. Metaverse Insights

Why didn’t Bitcoin rise after the halving (Bitcoin’s decline reasons)

• Metaverse Insights • 80 views

Why didn\’t Bitcoin rise after the halving? Why didn\’t Bitcoin rise after the hal

Why didnt Bitcoin rise after the halving (Bitcoins decline reasons)

Why didn’t Bitcoin rise after the halving? Why didn’t Bitcoin rise after the halving?

On June 17, 2018, according to CoinDesk, the Office of the Comptroller of the Currency (OCC) announced that it has started implementing its rules for digital asset transfers since March 2020. This means that the agency will allow encrypted transactions and custodial services on permissionless blockchains, and provide services to users to improve the speed, reliability, and security of payment processing. In addition, US Treasury Secretary Yellen stated that they are closely working with the Federal Reserve to assess the need for new central bank tools to support private sector efforts.

According to previous reports from Bloomberg, after US President Biden recently made a statement on the regulation of digital assets, a lawsuit was filed against BitGo, a digital wallet company. However, due to the company’s unwillingness to provide services to customers, the company faces significant legal challenges and operational risks, which makes it unable to continue operations. However, if the authorities insist on halting any activities involving crypto companies, it may be forced to close or terminate.

From mid-December last year to now, Bitcoin has risen by over 50%, and its price has been steadily increasing since then. As the price of Bitcoin approaches the $20,000 mark, it continues to rise. Although the current market sentiment is bearish, Bitcoin still has some positive results. On January 11th of this year, after the price of Bitcoin reached a historical high of $20,000, there was a downward trend; within 8 hours, the price fell to around $19,500 and even dropped below $19,000 at its lowest point; the 9-hour chart showed that Bitcoin has been on a declining trend for the past three days and failed to break through the support level of $20,000.

So what impact did this halving really have? Let’s take a look at the reasons behind this halving together!

At the end of 2019, China’s Hong Kong, the world’s largest digital economy, officially launched its national digital currency CBDC and added 10 job positions within four months. The Chinese government issued its first sovereign credit certificate project “Credit Chain”, which includes an electronic invoice system based on DLT technology and the first domestic use of alliance technology. In the following year, China also implemented a series of financial technology applications.

In addition to China’s banking industry, large Internet giants like Facebook are also paying attention to the development of Bitcoin. Bitcoin halvings happened for most of 2018. Most of 2017 was a bull market for Bitcoin, and the popularity of the entire market at the end of 2017 made everyone see the benefits brought by the Bitcoin halving. However, when it came to this year’s halving, we realized that the impact of Bitcoin halving on the entire cryptocurrency market was not significant, for a simple reason: first, the halving will bring a wave of fund-driven market trends. Second, the halving did not bring major changes to the price of Bitcoin. Lastly, Bitcoin has high price volatility. Therefore, many people believe that this halving is different from previous years, and attention is only temporarily focused on short-term prices.

Reasons for the decline in Bitcoin

According to Coindesk, in the past few days, the price of Bitcoin has been in a bearish pattern. It closed at over $4,800 on Monday and fell back to over $4,000 after a brief rebound. However, due to the recent significant decline in Bitcoin, some analysts predict further downward movement. Since its low point on March 13, Bitcoin has been steadily rising, but altcoins have performed much better. According to data from BitMEXResearch, as of early February, the value of the Bitcoin/USD trading pair has dropped by 16%, sliding from the historical high of about $63,000 set in December to $11,500.

In addition, Ethereum (ETH) has experienced a similar situation. Since November last year, the total market value of ETH has increased by 15%, rising from over $97 million at the end of October to over 100,000 ETH today.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/24608/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/17/2023 16:28
Next 08/17/2023 16:50

Recommended articles