Come on, we've all had this thought before.
The next Bitcoin halving will come in April 2024, Bitcoin may experience a slight "buy the rumour, sell the news" event and decline for one last time to shake off the weak HODLers and the "paper hands" as they are called.
But ultimately, the price of the flagship cryptocurrency will go parabolic and before anyone knows it:
Boom! We have a $150,000 BTC, and everyone is happy. Right?
However, what if it was all a half-truth? What is there was little or no relationship between bull cycles and halving cycles.
Let's go over a few facts.
In a recent panel set up at the Swan Pacific Bitcoin festival in Santa Monica, California, Nik Bhatia, Fred Thiel, Ralph Zagury, and Andy Edstrom argued about whether BTC halvings truly cause bullish events, or are just another fad that novice investors jump into based on FOMO.
The popular belief is that Bitcoin suddenly goes parabolic after halvings.
However, some of these experts argue that while halvings may indeed have an impact on price, this effect may be going down the drain over time.
Fred Thiel, CEO of Marathon Digital, says that liquidity, not BTC halvings, is the main driver of the Bitcoin price in bullish cycles.
Thiel went further to say that the halving, by definition, has nothing in it, that impacts price.
Ralph Zagury, CIO of Swan agreed with Thiel, adding that the inflow of liquidity is really what drives the market, not the halvings.
Andy Edstrom, the product manager at Swan, took a different position.
The product manager suggested that regardless of what things look like, Bitcoin halvings are still bullish.
The expert went further to say that the magnitude of this effect can be debated over and over again. However, the truth is still that halvings matter for price.
However, despite their differing opinions on halvings, all agreed that liquidity is the key driving factor of Bitcoin bull markets.
According to Zagury, the outlook on Bitcoin is very bullish, and we are about to see a price movement soon.
Zagury says that he is very bullish on Bitcoin because of the massive liquidity that continues to pour in. "It's not going to take a lot for us to see a very big move," the expert says.
Edstrom also mentioned that if the FED stops hiking interest rates and switches to reducing these rates "quantitatively", it might inevitably lead to a significant increase in liquidity in the BTC market.
Keep in mind that according to a Reuters poll, the U.S. Federal Reserve will keep its key interest rate on hold on 1 November, and may wait longer than previously thought before cutting it.
Overall, the Swan BTC Festival panel's debate shows that there is no one-size-fits-all answer to whether Bitcoin halvings are bullish or bearish.
However, the long-term prospects for the cryptocurrency remain bullish, and 2024 is bound to be a good year for BTC.
While the halving may not be able to singlehandedly push the price of Bitcoin up, it is still one of the most important events that investors should keep an eye out for.
The halving reduces the block rewards for BTC by half and instead creates upward price pressure.
Halvings also contribute to Bitcoin scarcity and may help to reduce the cryptocurrency's overall spikes.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.