- Bitcoin typically faces price challenges 1-3 months after halving, as noted by VanEck’s Matthew Sigel in an August 19 interview with CNBC.
- Forced selling, including Germany’s sale of 49,858 Bitcoin, has contributed to recent price struggles, but market recovery is expected.
- A rise in global liquidity and the upcoming US election are seen as potential catalysts for Bitcoin to approach or exceed its all-time highs.
Bitcoin’s recent price struggles align with historical patterns seen after its halving events, according to Matthew Sigel, head of digital assets research at VanEck.
In an interview with CNBC on August 19, Sigel noted that Bitcoin typically faces challenges one to three months after a halving, with the most recent one occurring in April. Now that forced selling pressure has subsided, Sigel anticipates a potential recovery as these seasonal effects begin to fade.
Forced Selling and Market Trends
Bitcoin’s current price action has been heavily influenced by a wave of forced selling following the April halving. The German government’s sale of 49,858 Bitcoin in July, generating $2.6 billion, was one of the significant events contributing to this downward pressure.
Additionally, creditors of the bankrupt crypto exchange Mt. Gox have started receiving their repayments, with many choosing to hold onto their Bitcoin rather than sell, adding to the market’s recent turbulence.
Analysts highlight that post-halving challenges are typical, with Bitcoin often struggling for a few months before gaining momentum again. As these factors play out, the market may soon see a shift toward recovery, especially now that the forced selling is already done.
Liquidity Surge and Potential Upswing
Bitcoin might be about to enter a bullish phase, according to some experts, because global liquidity is increasing. This optimism is fueled by the belief that the market would return to a more ‘pro-liquidity environment’ by 2025, potentially propelling Bitcoin above its previous all-time high of $73,679.
Market Attitude and the US Election
Market dynamics for Bitcoin are likely to be significantly affected by the impending US presidential election. According to Sigel and other analysts, macroeconomic policies will probably stay the same, which means they will keep supporting a pro-liquidity atmosphere, which might be good for Bitcoin regardless of the election result.
As the effects of forced selling wane and global liquidity surges, Bitcoin is poised for a potential recovery. Analysts, including Matthew Sigel, suggest that the seasonal struggles following April’s halving are beginning to subside, setting the stage for a renewed bullish phase.
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