Reasons the 2024 Bitcoin halving could unfold differently compared to previous events.

The influence of the Bitcoin halving on cryptocurrency prices is frequently exaggerated, and the upcoming halving scheduled for April 2024 may unfold differently compared to past events, as noted by a prominent analyst.

This halving event, which occurs every four years, reduces by half the rate at which new Bitcoins are generated and is typically regarded as a key driver behind Bitcoin’s most significant price increases.

However, despite the optimistic narrative surrounding the halving, the event alone does not ensure Bitcoin’s value will rise.

If the diminished supply of new Bitcoin is not matched by considerable demand, price increases are unlikely.

Moreover, the halving is a fully predictable occurrence: this implies that all market participants are aware in advance of its timing, and thus the current price may already reflect the anticipated effects of the halving before it takes place.

“Events that we most expect usually do not materialize,” remarked Bloomberg analyst Mike McGlone, reflecting on the highly awaited event.

“And that’s what concerns me. There’s a complete consensus,” he added.

Additionally, with each halving, its effect on the new Bitcoin supply diminishes; over time, its significance will eventually wane. Consequently, shifts in demand are increasingly becoming the primary factor affecting Bitcoin’s price.

So, what will be the effect of the next Bitcoin halving on the cryptocurrency market? And if not the halving, what are the factors driving Bitcoin’s cyclical price increases? To explore this, check out our latest Cointelegraph Report on our YouTube channel and remember to subscribe!