The post Bitcoin’s Post-Halving Performance: Examining Factors Behind Modest Growth Compared to Previous Cycles appeared on BitcoinEthereumNews.com.

Bitcoin’s recent performance post-halving has been underwhelming, highlighting the stark contrast with previous cycles driven by market dynamics. Despite a significant rise to $95,000, market analysts noted that recent gains are the weakest recorded following a halving event. “The current macro regime—interest rates have never been this high,” remarked Kaiko Senior Analyst Dessislava Aubert, indicating a broader economic influence on Bitcoin’s price. Explore the nuances of Bitcoin’s post-halving surge and the economic factors impacting its performance, amidst rising interest rates in the financial landscape. Bitcoin’s Post-Halving Surge: A Frustrating Paradox Bitcoin’s halving event, which occurred in April 2024, typically signals a bullish momentum in the cryptocurrency markets. However, the reality following this latest halving paints a different picture. The coin is currently experiencing a 49% increase since the event, but it represents a mere fraction of the gains observed in previous cycles. Comparative Performance: Historic Gains vs. Current Trends Historically, Bitcoin’s price has skyrocketed post-halving, often leading to three- or four-figure percentage increases. For instance, after the halving in 2012, Bitcoin surged by nearly 8,000%. Comparatively, the uptick experienced in 2024 has been significantly muted. According to Kaiko, the present scenario marks the “weakest post-halving performance on record in terms of percentage growth.” This phenomenon prompts a closer examination of the factors at play. Macroeconomic Factors Impacting Bitcoin’s Rally Current macroeconomic conditions are hindering Bitcoin’s potential growth trajectory. The persistent high-interest rates have not only affected the cryptocurrency market but also influenced investor sentiment. Kaiko noted that “the current period of high uncertainty” has resulted in decreased speculative investment, which tends to support Bitcoin’s price. It has historically thrived in a low-interest-rate environment that encourages riskier asset investments. The Mining Industry’s Struggles within Economic Constraints The mining sector is feeling the brunt of these economic shifts as well. Curtis Harris,…

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Filed under: News - @ April 26, 2025 1:28 pm