Galaxy Digital Analyzes Bitcoin Halving Event, Provides Insights on Digital Currency Evaluation
Galaxy Digital, led by billionaire Mike Novogratz, is studying the Bitcoin halving event and offering insights into digital currency evaluation.
Unlike previous cycles, Bitcoin has failed to reach previous peak levels ahead of the upcoming halving, marking a significant deviation from historical trends.
Galaxy Digital, spearheaded by billionaire Mike Novogratz, distinguishes itself with its analysis of the Bitcoin halving event, another tool for assessing digital currency. Contrary to previous cycles, the current inability of Bitcoin to reach its previous peak levels at halving time can now be considered a reality. Bitcoin, at $73,737 as of March 14, declined by 5.9% the following day. The halving, scheduled for April 19, 2020, will reduce mining rewards from 6.25 Bitcoin to 3.125 Bitcoin.
Exchange-Traded Investment Funds (ETFs) Impact Bitcoin Halving Cycle Dynamics
Similar to the previous halving, Bitcoin experiences a steady daily price increase, reaching new levels each day. However, the trend direction is currently shifting from the right path. What sets this halving cycle apart from previous ones is that the cryptocurrency has yet to surpass its growth boundaries, which came after each halving event in past cycles. The last Bitcoin halving event in May 2020, with its price at $9,000, reached $69,000 in November 2021. This indicates that the bullish cycle expansion may have been prolonged.
Galaxy Digital indicates that since the beginning of January, when ETFs entered the market, the market’s breadth has developed another aspect. Coinbase confirms that these ETFs, classified as a “new demand standard,” may impact altering the standard dynamics of the halving event. However, it’s challenging to make an accurate assessment using rare historical data, but Bitcoin enthusiasts are optimistic that it may reach a new high after the halving.
Galaxy Digital Expects Bitcoin to Surpass Gold
Novogratz sees Bitcoin surpassing its initial function as the “new gold,” thereby not only competing for the largest share of funds under the control of the Millennial generation but also fighting for these funds. These forecasts indicate the market’s inclination to move in favor of preferred investor trends, suggesting that digital gold forms are gaining preference over traditional gold. Bitcoin’s spread as a payment method is the underlying basis for the shift from the standard finance model.
For Galaxy Digital, the prospects in this Bitcoin halving cycle are diverse as we transition into a different stage of the Bitcoin market where ETFs will play a primary role. Novogratz’s predictions suggest that the digital currency will surpass the value of gold. Hence, Bitcoin has increasingly become an integral part of the investment process, necessitating the emergence of digital assets.
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