Web3 accelerator Outlier Ventures declared that the traditional four-year Bitcoin cycle is no longer relevant, as the cryptocurrency has experienced its worst post-halving price performance this year.
Worst Post-Halving Performance to Date
Outlier Ventures’ Head of Research, Jasper De Maere, stated that
four months after the latest Bitcoin halving, the price has fallen
8%, marking the worst performance following any halving to date. He added that the halving event no longer fundamentally affects Bitcoin’s price, as it did in 2016.
The 2024 halving saw Bitcoin miners’ block rewards reduced from
6.25 BTC to
3.125 BTC. However, unlike previous halvings that sparked price surges, this year's event has not yielded the same positive results.
Changing Market Dynamics
According to De Maere, the last significant halving-related impact on Bitcoin’s price occurred in 2016, with miners’ rewards becoming negligible in the context of an increasingly diversified crypto market. He noted that while halvings may still affect miners’ treasury management, their overall influence on the market has diminished.
De Maere emphasized that understanding current market drivers is essential for founders and investors, as Bitcoin’s price still plays a crucial role in the broader crypto market.
Read more at The Block.
