Bitcoin mining difficulty marks new high before halving

Bitcoin halving could trigger short-term market decline

Historically, the asset declines between 15% to 40% pre-halving, per CoinMarketCap, and enters a parabolic increase in the long run following the code change. However, Bakhrom Saydulloev, Mercuryo product lead, told crypto.news that a short-mid term retrace triggered by miners liquidating BTC may happen.

Historical data shows that in the immediate aftermath of the halving, Bitcoin prices typically experience a decrease. At the same time, in the medium to long term, they tend to trigger bull runs. For instance, after a halving, some miners may feel pressured to sell their Bitcoin holdings to cover operational costs due to the 50% reduction in block rewards, affecting their profitability. This could lead to a market “sell-off” as some investors become uncertain about future price trends.

Bakhrom Saydulloev, Mercuryo product lead

Saydulloev further opined that previous halving occurred during better economic and investment climates, citing the current uncertain trajectory around crypto regulations. Conversely, general sentiment posits that the presence of spot Bitcoin ETFs could incentivize cash flow into the cryptocurrency. Spot Bitcoin ETFs have already garnered over $200 billion in trading volume in less than four months.