Traders in the cryptocurrency market have been eagerly anticipating the upcoming Bitcoin halving, given historical patterns that suggest it often leads to a surge in prices. With Bitcoin recently reaching a new all-time high, Coinbase foresees challenges in the post-halving period, particularly in the upcoming weeks.
In a recent blog post, Coinbase emphasized the need for the market to identify a new narrative to drive the price of Bitcoin after the halving. The exchange highlighted the upcoming period as potentially challenging for the asset.
Historical data from research firm Brave New Coin shows that the period from June to September has been relatively weak for Bitcoin, with only a 2% price surge observed since 2011. However, the remaining eight months have been more favorable, resulting in an average increase of 19.3%. Coinbase noted a slight decline in market momentum as it searches for the next narrative to stimulate growth.
Despite this, Coinbase remains optimistic, suggesting that the market appears convincing, with potential for new investors to enter. Bitcoin’s acceptance as a digital form of gold could attract further investment. Notably, Bitcoin holds a significant dominance in the digital asset market, with a market dominance of 50.6%, according to Coinbase.
The report also addressed the limited opportunities for investors seeking price declines to enter the market, as more participants join the space. As a result, Coinbase anticipates an aggressive buying trend during price dips, despite the volatility associated with price discovery.
Historically, Bitcoin has experienced price surges following halving events. For instance, after the 2020 halving, Bitcoin surged from $8,787 to reach a new high of $69,000 in November 2021.
In other news, Coinbase received a favorable ruling in the United States Court of Appeals, confirming that it did not violate the Securities Exchange Act. This ruling is likely to provide further stability and confidence in the operations of the cryptocurrency exchange.
