The Bitcoin halving, which occurs every four years, is expected to happen on April 20th in Taiwan time. At that time, the block reward will decrease from 6.25 BTC to 3.125 BTC. In previous cycles, the Bitcoin price has experienced months of significant increases after each halving, leading many individuals in the cryptocurrency community to believe that history will repeat itself.
However, according to a report by CoinDesk, investment banking giant Goldman Sachs has cautioned its clients not to overinterpret past halving cycles. The FICC and Equities team at Goldman Sachs, in a report to clients on April 12th, stated that while the market has been dominated by bulls after the previous three halvings, the extent and time required to reach the ultimate peak were different each time. Additionally, the macroeconomic environment during those periods was also different from the current high inflation and high-interest-rate environment.
Goldman Sachs believes that the Bitcoin halving serves as a “psychological reminder” of the limited supply of Bitcoin to investors, and the medium-term outlook depends on the adoption of Bitcoin spot ETFs. The Goldman Sachs team wrote:
Related reports: “21Shares Report: What’s Different about the Fourth Bitcoin Halving?” “Countdown to Bitcoin Halving! Bernstein Analyst: BTC Will Challenge $150,000 Target Price After the Halving” “10x Research: Miners May Sell $5 Billion Worth of Bitcoin After the Halving, Leading to Months of Sideways Trading”
