Key Points
- Goldman Sachs analysts have issued a Bitcoin price warning two days ahead of the halving event.
- Caution is reportedly needed against extrapolating the past cycles and halving’s impact.
Bitcoin is seeing intense price volatility two days ahead of the halving event scheduled for April 20.
Various events took place that led to sudden price dips and unexpected rebounds after the geo-political issues over the past weekend.
At the moment of writing this article, BTC is trading a little under $63k on CoinMarketCap, down by approximately 1% in the past 24 hours, following a surge in the coin’s price due to Hong Kong’s announcement regarding the approval of the first batch of Bitcoin and Ethereum ETFs.
While Galaxy crypto and blockchain leader seemed optimistic regarding more price accumulation potential ahead of the halving event. Goldman Sachs analysts issued a warning regarding Bitcoin’s price.
Goldman Sachs analysts issue Bitcoin price warning
As noted by Forbes earlier today, Bitcoin is headed to its next supply cut – the fourth one so far.
Goldman analysts highlight that historically, the previous three halvings have been accompanied by Bitcoin price appreciation after the event, but in the past, the time needed for the digital asset to reach new ATHs differed a lot.
The other day, Galaxy also addressed the previous cycles before the Bitcoin past halvings, noting that there’s still time for price accumulation.
Goldman, on the other hand, noted the importance of caution that should be taken these days against extrapolating the past cycles and the impact of the halving event, considering the respective prevailing macro conditions.
Previous halvings came at a time of loose Federal Reserve monetary policy, and now, the Fed is battling a gotten than expecting inflation. A few days ago, the March Consumer Price Index (CPI Report) came in.
The consumer price rose 3.5% from a year ago in March, and the result was higher than expected. Economists surveyed by Dow Jones had been looking for a 0.3% gain and a 3.4% year-over-year level.
Fed Chair Jerome Powell stated that the Fed will not cut interest rates until he has higher confidence that the inflation is moving towards the Fed target of 2%.
Forbes also mentioned Alex Kuptsikevich, FxPro’s senior market analyst, who said that the technical picture for Bitcoin is “rather worrying” as there’s no significant rebound yet. He said that the market seems to be getting used to the prices in anticipation of a halving.
Goldman analysts concluded by saying that whether this upcoming halving ends up being a mere “buy the rumors, sell the news event” is less important for Bitcoin’s medium-term outlook.
This time, the price will probably continue to be driven by other factors, such as the strong demand for Bitcoin ETFs and Asia’s optimistic moves in this direction.