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HomeNewsCoinbase Predicts: Bitcoin and Crypto Markets Driven by Macro Factors Post-Halving

Coinbase Predicts: Bitcoin and Crypto Markets Driven by Macro Factors Post-Halving

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  • Analysts monitor $72,500 as a crucial resistance level; surpassing it could signal a potential rise to $80,000.
  • If Bitcoin fails to break $72,500 and holds, a possible retraction to $60,000 could offer a shorting opportunity.

Following the recent halving of Bitcoin, Coinbase has reported that broader economic factors are likely to be the main drivers of cryptocurrency markets in the near term. According to a research report released by Coinbase, these factors include heightened geopolitical tensions, sustained high interest rates, inflation, and increasing national debts.

Economic Factors Shaping Crypto Markets

The report, authored by Coinbase analyst David Han, emphasizes that these external economic factors will play a significant role in influencing cryptocurrency valuations. It highlights a notable increase in the correlation between Bitcoin and altcoins, suggesting Bitcoin’s pivotal role in the cryptocurrency market as it continues to be viewed as a macroeconomic asset.

The Impact of Bitcoin Halving

Bitcoin halvings, which cut the production rate of new bitcoins by 50% approximately every four years, have traditionally signaled the start of bull markets. However, the Coinbase report suggests that current economic conditions might modify the market’s typical response to such events. It notes that previous market upswings post-halving were supported by positive developments within the cryptocurrency ecosystem.

Divergent Views on Bitcoin

The report from Coinbase also discusses the varied perceptions of Bitcoin among investors. Some investors see Bitcoin as a speculative asset, while others treat it as a form of ‘digital gold’ that can act as a hedge against geopolitical and financial uncertainty. This bifurcation in perception has reportedly led to a moderation in the volatility typically associated with Bitcoin.

Additional Insights

Supporting Coinbase’s viewpoint, a recent report from Goldman Sachs advised caution in assuming that past Bitcoin halving cycles would repeat under the current economic climate. This statement from a major financial institution underscores the need for careful analysis of Bitcoin’s halving and its potential impact given the prevailing macroeconomic conditions.

Analyzing Bitcoin’s Price Fluctuations Following Its Latest Halving

Bitcoin’s value has shown significant fluctuations following the latest halving event, which reduces the reward for mining new blocks in half. This adjustment, intended to limit the supply of new bitcoins and theoretically enhance their value through scarcity, has not led to the immediate price surge anticipated by many.

Source → Tradingview

Post-Halving Price Movements

Historically, halvings are expected to lead to higher prices due to decreased supply. However, this time, the increase in Bitcoin’s price was moderate rather than substantial immediately following the halving.

Predictions on Bitcoin’s Future Performance

Market analysts are closely watching the $72,500 level, which is seen as a critical resistance point for Bitcoin. If Bitcoin can decisively exceed this level, it might indicate a potential continued increase in value, potentially reaching up to $80,000. Such a movement could be pivotal in pushing towards the $100,000 threshold.

BTCUSD_2024_04_21_23_36_58_763e6f9b58
Source → Tradingview

On the other hand, if Bitcoin struggles to break through the $72,500 resistance and stabilizes around this level, it might retreat towards the $60,000 mark. This scenario presents a possible opportunity for investors interested in short selling.

 

Conversely, a clear break above this resistance could lead to a continuation of the bullish trend, potentially setting the stage for Bitcoin to approach or exceed $100,000.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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