Traders in the cryptocurrency market have been anticipating the upcoming halving since the beginning of the year. This is down to the fact that every halving comes with a promise of a price surge. With Bitcoin recently hit a new all-time high price, Coinbase believes that it has obstacles to overcome after the halving. The exchange, in its recent blogpost noted that this time of the year will constitute the obstacle for the asset.
Coinbase discusses the upcoming Bitcoin halving
In its post, Coinbase clarified that the market needs to find another narrative to propel the price of the token after the halving. The firm noted with the halving due in the next few weeks, it would have to surmount the obstacle that this period brings. This period is regarded as a very weak period for digital assets and other financial instruments.
According to data from research firm Brave New Coin, Bitcoin has been able to witness only a 2% surge in its price from June to September since 2011. However, the other eight months were bliss for the asset, netting a total of 19.3% increase. Moreso, Coinbase said that the market is starting to experience a slight drop in momentum as it continues to look for the next narrative to trigger a surge. In the last 24 hours, the total crypto volume has experienced a 33% decrease to rest at $61.78 billion per data from CoinMarketCap.
Market momentum and investor trends
Coinbase also noted that the market is looking convincing as there is a high chance that new investors will continue to troop into the market. The exchange clarified that Bitcoin has already been accepted as a digital form of gold, which could in turn trigger more investors into the market. Bitcoin is very large compared to other digital assets, with the asset having a market dominance of 50.6%.
The Coinbase report also said that investors looking for price declines to enter the market might soon discover that there is limited space for that to happen as more investors continue to troop into the space. As a result of that, the exchange feels that this cycle might experience an aggressive buying trend of dips despite the volatility during price discovery.
A surge in the price of Bitcoin is often one of the after-effects of halving, with the pattern being evident across the previous halving events. After the last halving in 2020, Bitcoin experienced a surge 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.
