- The Bitcoin halving is only days away and is expected to catapult the cryptocurrency.
- But Bitcoin is in for “a tricky couple of weeks” ahead, David Brickell of FRNT says.
- Three factors will impact the price of Bitcoin, he says.
Bitcoin investors are gearing up for a post-halving boom in the next couple of weeks.
However, three factors could make the days leading up to it chaotic, according to David Brickell, head of international distribution at digital assets advisory platform FRNT.
”We’re in for a tricky couple of weeks,” he said.
Taxes
A US tax deadline, Beijing’s financial policy, and Janet Yellen’s China visit will rock the price of the world’s leading cryptocurrency in April, says Brickell.
He outlined his analysis on Deribit’s Crypto Options Unplugged podcast this week.
US taxpayers are due to file their income taxes on April 15.
Some Bitcoin holders may sell their digital assets to pay their taxes ahead of the deadline, thus affecting the price, Brickell said.
China
In China, a months-old quote from a speech delivered by Chinese President Xi Jinping has made the rounds, sparking speculation that Beijing is urging its central bank to start buying government bonds to prop up the economy.
A liquidity injection into the Chinese economy is “gonna be good for Bitcoin,” Brickell said.
This week, US Treasury secretary Yellen will visit China to resume the rekindling of the relationship between Beijing and Washington.
“China is a big holder of US Treasuries and they will have a big part to play” in funding the US deficit, Brickell said.
Yellen will likely return to Washington and encourage Federal Reserve chair Jerome Powell to cut rates, Brickell said.
He added that Powell softened his tone about upcoming cuts in December on the back of a US delegation visiting China, following US President Joe Biden and Xi meeting in person in November.
Halving
The Bitcoin halving — expected on April 19 — is one of the most anticipated events in the crypto calendar.
It will slice the amount of new Bitcoin created by miners in half.
In the months following a halving event, Bitcoin’s price tends to surge, crypto research firm Kaiko noted in a report this week.
However, the success of the US spot Bitcoin exchange-traded funds this year have caused a shortage of the cryptocurrency.
With the supply going down as demand skyrockets, Bitcoin surged to a new all-time highs in March.
That could be just the beginning.
“ETFs have seen strong overall inflows, which could suggest an immediate positive price impact as supply continues to drop,” Kaiko wrote.
Crypto market movers
- Bitcoin rose 0.6% and is trading at about $66,560.
- Ethereum rose 0.9% to $3,348.
What we’re reading
- Missed Ethena’s $500m airdrop? The DeFi project is already planning the next one — DL News.
- Best OTC Crypto Exchanges April 2024 — Milk Road.
- The 8 Most Profitable Crypto Narratives in Q1 2024: CoinGecko — Unchained.
- Best Crypto Options Trading Platforms April 2024 — Milk Road.
- Binance breaks silence on Nigerian crisis by insisting detained exec has ‘no decision-making power’ — DL News.
Eric Johansson is DL News News Editor. Got at tip? Email him at eric@dlnews.com.
