A new report from cryptocurrency exchange Coinbase shows that the impact of the Bitcoin halving event on asset performance remains unclear as several exogenous factors play an important role in market behavior.
While the halving is considered positive as it is believed to increase BTC’s expected scarcity and support its supply and demand dynamics, gaining a clear understanding of market reaction requires disentangling the impact of dollar movements, interest rates, and global liquidity.
David Duong, director of institutional research at Coinbase, explained in the report that with only three halving events, evidence of market reaction remains limited because they all occur at the same time as some significant monetary and fiscal developments.