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According to crypto giant Bitwise, markets are underestimating the long-term impact of the Bitcoin halving

The digital asset market tends to underestimate the long-term price impact of Bitcoin (BTC) halvings, according to crypto index fund management giant Bitwise.

Bitwise notes that after previous halvings in 2012, 2016 and 2020, BTC's price rose 9%, fell 10% and rose 6% in the first month.

However, Bitcoin rose 8,839% in the first year after the 2012 halving, 285% in the year after the 2016 halving, and 548% after the 2020 halving.

Bitcoin spot trading volume has also increased in the year following each of the three halvings, according to Bitwise chief investment officer Matt Hougan and Juan Leon, a senior crypto research analyst at the company.

“Of course we have limited data: we only work with three historical examples. Still, the picture they paint is relatively intuitive, suggesting that the market is pricing in the short-term impact of the halving but underestimating the long-term impact. The data also suggests that the halving could lead to a price increase in the long term.”

Source: Bitwise/X

According to hash rate marketplace NiceHash, Bitcoin's halving date is currently scheduled for April 20.

At the time of writing, BTC is trading at $61,486. The highest-valued crypto asset by market capitalization has fallen more than 3% in the last 24 hours and more than 12% in the past week.

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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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