Bitcoin Halving Event: Market Complexity and Outlook for Future Investment, According to Coinbase
Summary:
Coinbase, a cryptocurrency exchange, anticipates that the Bitcoin halving event slated for April 21 may trigger higher prices. However, other seasonal market factors could dampen this effect. Recent data shows a downswing in cryptocurrency trades, falling 33.25% to $61.78 billion in the last 24 hours, according to CoinMarketCap. Despite the current lull, Coinbase predicts a fresh influx of investors attracted by Bitcoin's growing reputation as 'digital gold'. The recent court ruling in favor of Coinbase emphasizes that secondary crypto-asset sales do not violate the Securities Exchange Act.
Cryptocurrency enthusiasts are keeping a close eye on the Bitcoin (BTC) halving event, hoping it might propel a significant increase in value. However, the seasonality of the cryptocurrency market may curb these aspirations, suggests a market commentary report by cryptocurrency exchange Coinbase, released on April 5. According to the report, the anticipated BTC halving slated for between April 20-21 may indeed result in higher Bitcoin values, but other influential market factors typical for this time of year could potentially offset this effect. Historical data compiled by digital asset research firm Brave New Coin show that Bitcoin's average monthly return between June and September since 2011 has been approximately 2.7%, compared to an average approximated at 19.3% during the other eight months of the year. Interestingly enough, Coinbase also pointed out that the volume of global crypto trades has been gradually relaxing as the market seeks the next impetus for upward price momentum. In the last 24 hours, the total volume of cryptocurrency trades amounted to $61.78 billion, marking a 33.25% drop from the previous day, according to current data from CoinMarketCap. However, the Coinbase report also casts an optimistic light on the foreseeable future, suggesting that Bitcoin's mounting reputation as 'digital gold' is likely to entice a fresh wave of investors to enter the crypto market. Bitcoin currently holds 50.6% of the total market capitalization of cryptocurrencies, as represented by CoinStats data. The Coinbase report offers further insight, suggesting that investors who are holding off for price drops may find less and less opportunity to do so as the market expands. "We believe that downturns will likely be bought up more aggressively relative to previous cycles, despite ongoing price volatility," goes the Coinbase speculation. An April 6 post by Cointelegraph conveyed that the U.S. Court of Appeals has ruled in favor of Coinbase. The ruling confirmed that secondary cryptocurrency sales conducted via its platform do not breach the Securities Exchange Act. The plaintiffs in this case accused Coinbase of trading unregistered securities, further alleging that the exchange has breached multiple securities laws. Coinbase, on the other hand, contended that secondary sales of crypto-assets did not fit the definition of securities transactions, thereby disputing the relevance of securities regulations.
Published At
4/7/2024 8:19:19 AM
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