Bitcoin halving plummets in currency circle

Bitcoin often plummets after halving for the following reasons: 1. Selling pressure (buyers before halving take profits); 2. Hype subsides (expected price increase); 3. Technical adjustment (miners’ operating costs increase) ); 4. Market sentiment turns pessimistic; 5. Other factors (regulatory concerns, economic conditions). It should be noted that a plunge after the halving is not inevitable.

The reason why Bitcoin plummeted after halving

Bitcoin halving is an event that occurs every four years in the Bitcoin network event, designed to slow down the creation of new Bitcoins. However, after the halving occurs, the price of Bitcoin usually plummets. The main reasons are as follows:

1. Selling pressure

• On the eve of the halving, many investments Investors expect the price to rise, so they buy Bitcoin in large quantities.
• After the halving, these investors may take profits, resulting in a lot of selling pressure.

2. The hype fades

• The halving itself is a highly anticipated event that attracts many speculators.
• After the halving occurs, the hype subsides, causing demand to drop.

3. Technical adjustment

• The halving causes the rate of Bitcoin generation to be halved, which means that it becomes more difficult for miners to obtain new Bitcoins. .
• Miners need to adjust their operating costs, which could cause the price of Bitcoin to fall.

4. Market Sentiment

• After the halving, market sentiment may turn pessimistic.
• Investors may be worried about falling demand for Bitcoin, causing the sell-off to intensify.

5. Other factors

• After the halving, other factors, such as regulatory concerns or economic conditions, may also affect Bitcoin prices.

It is worth noting that the price collapse after Bitcoin halving is not an inevitable event. In some cases, a strong upward trend occurs after the halving. However, the above factors explain why post-halving plunges are often common.

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