Prominent cryptocurrency analyst and Into The Cryptoverse creator Benjamin Cowen has uncovered an unsettling trend in Bitcoin’s behaviour prior to the halving.
According to a recent tweet from Cowen, the return on investment for Bitcoin in July 2023 was -4.09%, which is comparable to the -4.74% average return seen in prior Julys before to the halving. Looking ahead, Cowen notes that, in August of previous years before to the halving, the average return on Bitcoin was a startling -21.3%.
In addition, after July’s dismal close, Bitcoin started August on a sour note, extending the downward trend that resulted in a 2% decline.
For now, though, there is some optimism for Bitcoin owners since the price has remained over the critical $28,600 per coin threshold. This tenacity implies that there are consumers actively promoting cryptocurrencies at this point.
Main event
The true issue is the impending halving, which is predicted to occur in less than 260 days, in mid-April 2024. Cowen’s caution is directed primarily towards pre-halving times, and as this momentous occasion approaches, investors are forced to ponder if the past will repeat itself.
On the one hand, it is challenging to say for sure whether the negative dynamics seen in August will continue due to the limited sample size of pre-halving periods. However, since the beginning of August, Bitcoin’s price fluctuations have been exhibiting bearish tendencies, which casts doubt on the forecast for the future.
