- Kraken’s director sees the halving as symbolic in terms of supply impact and usage
- Some market watchers expect a decline in the short term
After much anticipation, Bitcoins [BTC] The fourth halving is finally done and dusted. In turn, there is no doubt that the 2024 cycle has been an outlier, especially since BTC hit a new all-time high of $73.7k on the charts just before the halving.
According to Thomas Perfumo, head of strategy at Kraken, the fourth halving cycle also has other unique and “symbolic” features. In a recent one interviewsaid the director,
“But this one, in my opinion, is the most symbolic in Bitcoin history and even looking ahead. Because the moment people look at their conventional currency, inflation, interest rates and the economic environment they live in, they see this alternative form of currency, Bitcoin.”
In addition to the fourth halving’s unique impact on Bitcoin’s supply schedule, he noted:
“When the halving occurs, 94% of the Bitcoin that will ever exist will have been mined. And we will see less than 1% inflation in the circulating supply of Bitcoin in the future.”
BTC’s short-term price prospects
Most markets expect increased selling pressure after the halving. In another separate one interview, Mizuho Securities Managing Director Dan Dolev claimed the halving will be a ‘sell-the-news’ event.
Citing the huge publicity surrounding the 2024 halving compared to previous cycles, he said:
“Bitcoin was already fully priced in. It’s kind of a sell-the-news event at this point. I think once the event actually happens, there will be a run for the exit.
In early April, the founder of BitMEX reiterated similar projections, citing the US tax season as a catalyst for the liquidity crisis around the halving.
Geopolitical risks could further strengthen bearish sentiment. Especially as reports indicate that tensions in the Middle East could escalate after Israel and Iran attacked each other.
If so, short-term selling pressure could take the key away support levels after the halving. However, the price of BTC remains extremely volatile. Therefore, the price could continue to fluctuate between the pre-existing support and resistance levels even after the halving.