In the dynamic world of cryptocurrencies, few events carry as much weight as the Bitcoin halving. Scheduled for 2024, this event has sparked anticipation among investors worldwide. But what exactly is the Bitcoin halving, and why are analysts predicting a potential “sell-the-news” scenario?

The Bitcoin halving, which occurs approximately every four years, is a significant event in the cryptocurrency space. It involves a reduction in the rewards miners receive for verifying transactions on the Bitcoin network. This reduction effectively halves the rate at which new Bitcoins are created, hence the term “halving.”

Historically, there have been three such halving events, each resulting in a decrease in miner rewards. The most recent halving took place on May 11, 2020, reducing the reward from 12.5 BTC to 6.25 BTC per block mined. Now, as we approach the next halving in 2024, analysts are closely monitoring its potential impact on the market.

Steno Research, a leading firm in crypto market analysis, suggests that the upcoming Bitcoin halving could follow a familiar pattern observed in previous events. Dubbed the “buy the rumor, sell the news” phenomenon, this pattern indicates a surge in Bitcoin’s value leading up to the halving, followed by a decline in the months that follow.

According to Steno Research analysts, the 2016 halving provides a compelling precedent for what might unfold in 2024. In that instance, selling pressure persisted for up to four months after the halving event. Despite heightened anticipation from Bitcoin ETF holders, a similar scenario could unfold this time around.

The report highlights a potential surge in BTC’s value leading up to the halving event. However, within the first 90 days following the halving, the value could dip below its pre-halving level. Drawing parallels with the 2016 halving, analysts anticipate a similar outcome for the upcoming event.

Steno Research’s analysis reveals that Bitcoin’s price remained below its pre-halving level for the entire 90 days following the 2016 halving. Specifically, on the 90th day post-halving, Bitcoin was priced 8.4% lower than before the event. These findings underscore the importance of understanding historical trends in navigating the cryptocurrency market.

Data from CryptoQuant further supports this analysis, indicating that Bitcoin daily mining rewards are currently at their highest ever. Despite the reduction in issuance post-halving, the value of Bitcoin rewards remains significant, especially with the cryptocurrency trading close to its all-time high.

With Bitcoin’s current price hovering around $71,563, the reduction in rewards translates to $224,512 worth of Bitcoin for miners, compared to $55,000 after the last halving. This disparity highlights the potential impact of market dynamics on miners’ profitability post-halving.

As investors brace themselves for the upcoming Bitcoin halving, it’s essential to approach the event with caution and a thorough understanding of market trends. While historical data provides valuable insights, the cryptocurrency landscape is inherently unpredictable, requiring vigilance and adaptability from market participants.

In conclusion, the Bitcoin halving in 2024 is poised to be a significant event in the cryptocurrency market. While anticipation may drive prices higher leading up to the event, investors should be prepared for potential volatility in the months that follow. By staying informed and understanding historical patterns, investors can navigate the evolving landscape of cryptocurrencies with confidence and resilience.