It is no secret that the Bitcoin (BTC) halving can have a huge positive impact on the Bitcoin price. After all, that is exactly what happened after every half in the past. But you don’t usually hear about bitcoin from investment banks, and certainly not in a positive way. But the German investment bank does.
“Bitcoin halving will lead to an increase”
Hamburg Financial Institute Berenberg wrote in a study on how bitcoin could leave a bear market in the coming months. This claims Decode, who said he had read the unidentified study. This shift is said to be caused by “a variety of factors, both evolution and timing”.
For example, bitcoin is the only digital asset that the US Securities and Exchange Commission (SEC) considers a commodity rather than a security. This means that BTC may have an exemption from the regulatory issues that some other tokens face. After all, the token is ‘mined’ by bitcoin miners just like a commodity, rather than being issued by a centralized entity entirely.
Speaking of mining, the next bitcoin halving is scheduled to take place in the spring of 2024. This means that after this event, miners will get half of the bitcoins for their efforts. That would be positive for the Bitcoin price – at least based on the past.
The decoding of three graphs shows that all three previous halvings led to the next bull market very quickly. The halving in 2016 is an exception, followed by a major crash before starting an uptrend shortly thereafter.
Has Bitcoin become a safe haven?
Berenburg cites MicroStrategy (Stock Ticker: MSTR) as a suitable stock for exposure to bitcoin. The stake will act as a lever in this. Michael Saylor’s company owns more bitcoins than any other company, so it can benefit greatly from a potentially large price increase.
The investment bank argues that the banking crisis has led investors to increasingly look at bitcoin as an alternative asset in a broader financial context. So it will not only be a speculative tool, but also a way to reduce the risks you take with other asset classes. Bitcoin will now increasingly become an alternative currency.
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