Goldman Sachs On Bitcoin Halving: It doesnt Matter If Its A Buy The Rumor, Sell The News Event
Analysts at Goldman Sachs, a leading global banking and investment management firm, have offered valuable insights into the anticipated effects of the forthcoming Bitcoin halving, on the price of the cryptocurrency. They emphasize that while the Bitcoin halving is a noteworthy event, other major factors will likely exert greater influence on Bitcoins future value.
Bitcoin Halving To Play Lesser Role In BTCs Outlook
In a note to clients, Goldman Sachs analysts have cautioned against reading too much into the past Bitcoin halving cycles and their impact on the cryptocurrency. Based on historical trends, the Bitcoin halving cycles tend to have a favorable effect on the value of Bitcoin, often triggering a bull run.
The bank noted that whether the Bitcoin halving scheduled for April 20, becomes a buy the rumor, sell the news event, it would hold less significance for the cryptocurrencys medium-term outlook.
They argue that the future performance of the pioneer cryptocurrency would be more heavily influenced by the supply and demand dynamics within the current market. Additionally, the analysts highlighted that the growing interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs) combined with the self-reflexive nature of the crypto market would be the primary contributing factor to Bitcoins price action and future outlook.
Sharing a similar perspective, analysts at CryptoQuant disclosed earlier in April that the 2024 Bitcoin halving was no longer a primary catalyst for Bitcoins bullish surge. They highlighted that factors such as increasing demand from large-scale investors and diminishing supply were now the key drivers of Bitcoins upward momentum.
Analysts Warn Of Macroeconomic Influence On New Halving Cycle
Analysts at Goldman Sachs have predicted that macroeconomic factors such as inflation could have a significant influence on the upcoming Bitcoin halving event.
Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions, Goldman Sachs analysts noted.
Unlike previous halving cycles, the present economic conditions display high inflationary pressures and interest rates, which could cause the 2024 Bitcoin halving cycle to diverge from historical patterns. In other words, the analysts have suggested that for Bitcoins historical halving bull runs to occur, macro conditions need to be supportive of investor risk-taking.
Currently, the United States faces challenges with high inflation, while interest rates stand above 5%. These conditions may exert pressure on Bitcoins market dynamics. However, despite the prevailing circumstances, many see the digital currency as a formidable inflation hedge and a beacon of hope against escalating inflationary pressures.
Read more: https://www.newsbtc.com/news/bitcoin/goldman-sachs-bitcoin-halving/
Text source: NewsBTC
