In a recently published market commentary, cryptocurrency group Galaxy Digital, which is spearheaded by billionaire Mike Novogratz, has noted that the upcoming Bitcoin halving event is different from the previous ones.
During previous cycles, Bitcoin would break its old all-time highs after the halving. However, this was not the case this time around.
The world's largest cryptocurrency reached its current all-time high of $73,737 on March 14. It is currently down 5.9% from its peak just eight days ahead of the halving event.
The number of new coins that will be earned by miners will be halved from 6.25 BTC to 3.125 BTC on Apr. 19.
Alex DovbnyaThe previous halving event took place on May 11, 2020. Back then, the largest cryptocurrency was trading at roughly $9,000. The leading cryptocurrency managed to reach the peak of the previous bull cycle only in November 2021 when it touched $69,000.
However, this time around, the market dynamics might be different due to the successful debut of Bitcoin exchange-traded funds (ETFs) in January. According to Coinbase, these products have created "a new anchor for demand."
Of course, the sample of previous halving is way too small in order to be able to make accurate predictions. However, many industry leaders are confident that Bitcoin will also be able to reach new highs this time around.
As reported by U.Today, Ripple CEO Brad Garlinghouse recently predicted that the price of Bitcoin could reach $5 trillion this year.
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