Bitwise: The long-term impact of Bitcoin halving is being underestimated by the crypto market.

Bitwise Asset Management has stated that the price action of Bitcoin (BTC) following its upcoming halving on April 20 has historically been disappointing. In the month after the past three halvings, the price of Bitcoin dropped, but in the year that followed, it experienced significant gains of at least triple-digit percentage points. For example, after the 2012 halving, Bitcoin gained 9% in the following month and then surged by 8,839% over the next year. A similar pattern occurred after the 2016 halving, with a 10% drop in the month after followed by a 285% gain and a peak price of $20,000 in 2017. In 2020, Bitcoin saw a 6% price gain in the month post-halving and then a 548% increase in the year following. Bitwise noted that while the market prices in the short-term impact of the halving, it underestimates the long-term impact. This current market cycle is the first time that Bitcoin has reached an all-time high before its halving. Despite this, industry executives are pessimistic in the short term, predicting a potential $5 billion miner sell-off after the halving, which could put downward pressure on markets. Additionally, market corrections since the 2022 bear market bottom have ranged from 18% to 23%, and currently, markets have corrected by 16%, suggesting that there may be further correction to come. Analysts have suggested that BTC could potentially fall to around $51,000.