Thu, September 19, 2024 at 17:54

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I want to discuss Bitcoin halving and its impact on the market.

  • Bitcoin halving is an event where the reward for mining new blocks is cut in half.

  • The most recent halving reduced miner rewards from 6.25 to 3.125 BTC.

  • 
• Annie

  • Interesting!

  • So, what does this mean for investors?🤔

  
• 

  Kang-hoon

  • For investors, Bitcoin halving can significantly affect supply and demand dynamics.

  • Historically, past halvings have led to substantial price increases.

  • For instance, after the 2016 halving, Bitcoin's price rose by 51% in six months, and after the 2020 halving, it surged by 83% in the same period.

• Annie

  • Wow, those are impressive numbers!😮 Does that mean prices will always go up after a halving?

  
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• 

  Kang-hoon

  • Not necessarily.

  • While historical data shows a trend of price increases post-halving, it's important to consider other market factors.

  • For example, the amount of Bitcoin held on exchanges has hit a five-year low, indicating decreased liquidity and a focus on long-term holding among institutional investors.

• Annie

  • So, institutional investors are holding onto their Bitcoin?

  • Does that mean they expect prices to rise?📈

  
• 

  Kang-hoon

  • Yes, that's a reasonable assumption.

  • The scarcity of Bitcoin, combined with institutional interest, such as BTC spot ETFs trading over $1 billion on March 13, 2024, suggests that many expect prices to rise.

  • 

  • This behavior could lead to a supply squeeze, potentially driving up prices.

• Annie

  • That makes sense.

  • What are some strategic investment tips around Bitcoin halving events?💡

  
• 

  Kang-hoon

  • Here are a few tips: First, consider buying Bitcoin a few months before the halving, as prices often rise in anticipation.

  • Second, hold through the halving, as prices have historically shown bullish trends post-event.

  • Third, use dollar-cost averaging to minimize the impact of short-term price fluctuations.

• Annie

  • Those are great tips!

  • Should investors also consider selling some of their holdings after the halving?🤔

  
• 

  Kang-hoon

  • Yes, selling a portion of holdings post-halving can be a good strategy if prices rise significantly.

  • This helps lock in profits and balance the portfolio.

  • However, it's crucial to stay informed about market news, regulatory changes, and technological developments to make well-rounded decisions.

• Annie

  • Got it.

  • So, overall, would you say Bitcoin halving is a good thing for the market?🌟

  
• 

  Kang-hoon

  • Absolutely.

  • Bitcoin halving events have historically led to price increases and have reshaped the market dynamics.

  • The scarcity factor and institutional interest make it a promising investment opportunity.

  • However, it's essential to have realistic expectations and prepare for potential volatility.

• Annie

  • Thank you, Kang-hoon!

  • This was very insightful.

  • I feel more confident about navigating the crypto market now.😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always happy to help.

  • Remember, staying informed and flexible is key to success in the ever-changing world of cryptocurrency.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.