Bitcoin Halving: Economist Warns of Potential Price Drop Amidst Macro Headwinds and Miner Selling

Bitcoin is set to undergo its highly anticipated halving on April 20, but not everyone is optimistic about the cryptocurrency’s future price trajectory. Economist Paolo Tasca has warned that several macroeconomic and industry factors could dampen Bitcoin’s price following the halving.

Tasca, the founder of the DLT Science Foundation and a professor at University College London, pointed to a poor macroeconomic backdrop, recent price gains, and potential selling pressure from Bitcoin miners as reasons why Bitcoin may struggle to rally post-halving.

While halvings have historically been followed by price appreciation, Tasca believes that this time may be different. He noted that Bitcoin has seen a significant influx of over $12 billion into Bitcoin ETFs, which could lead investors to “sell the news” when the halving occurs.

The economist also highlighted macroeconomic headwinds, such as high inflation and interest rates, as potential factors that could hinder a post-halving Bitcoin rally. He suggested that the current economic conditions may not be as favorable for risky assets like Bitcoin compared to previous halvings.

Additionally, Bitcoin miners could play a role in shaping the cryptocurrency’s price post-halving. Tasca mentioned that miners are holding onto a substantial amount of Bitcoin, estimated at $5 billion, which they may choose to sell in order to fund other investments or acquisitions.

With conflicting opinions from experts like Tasca, as well as industry figures like Quinn Thompson and Arthur Hayes, the future of Bitcoin’s price remains uncertain as the halving approaches. Investors will have to wait and see how these various factors play out in the coming weeks.