Low Interest Rates Impact Bitcoin's Next Halving Price Surge?

[Baofeng]

Could the next Bitcoin halving potentially result in a price increase that is different from previous patterns, where low interest rates were a key factor behind the price surge?
Some argue that because the last halving occurred during a time of very low interest rates, this dynamic might not repeat in the upcoming halving.
Can anyone explain how interest rates influenced the past halving's impact on bitcoin's price and whether this could challenge the expectations of a price increase in the next halving?

I guess the simple explanation is that or as the way I understand it, if FEDs cut interest rates, it causes the price to go up and conversely, if they increased the interest rates, then the price will be affected negatively, thus it might go down.

However, as far as bitcoin halving is concern, not sure if it will have a impact. Remember that the last halving we have, we are in the pandemic and yet throughout that bull run period, the price goes up despite the lockdown and the economy not moving at all during that time frame. So for now, there could be events that might have a financial global effect, but if could not impact the next bull run, in my opinion.

[stompix]

However, as far as bitcoin halving is concern, not sure if it will have a impact. Remember that the last halving we have, we are in the pandemic and yet throughout that bull run period, the price goes up despite the lockdown and the economy not moving at all during that time frame.

You've just said that lower rates would be good for the prices!
The last halving had these EFFRND:
November 2012  - 0.18
July 2016  - 0.39
May  2020 - 0.05

In all of Bitcoin's history, the previous high for effective rate was at 2.42, it's now 5.33%.
So it's highly improbable the next bull run will happen in an era of cheap money and low inflation!

[tygeade]

However, as far as bitcoin halving is concern, not sure if it will have a impact. Remember that the last halving we have, we are in the pandemic and yet throughout that bull run period, the price goes up despite the lockdown and the economy not moving at all during that time frame.

You've just said that lower rates would be good for the prices!
The last halving had these EFFRND:
November 2012  - 0.18
July 2016  - 0.39
May  2020 - 0.05

In all of Bitcoin's history, the previous high for effective rate was at 2.42, it's now 5.33%.
So it's highly improbable the next bull run will happen in an era of cheap money and low inflation!

Cheap money surely, but low inflation may not happen. We are still not where we want it to be and that means that we are still at a high inflation rate and that needs to go down a bit more. I understand that we need to reach to a point where it will take some time, and I think it should be considered a little different.

I get that we are going to have some trouble one way or another, but that doesn't mean that we are going to end up with anything good just yet, it should be a little different. I understand that it's a tough one, but it's going to be a little different in the end. Just realize that it's going to be something that will take some time to lower the inflation and be ready for it when it finally looks like recovering.

[jaberwock]

You are partially right. Low interest rate environment lead to inflation and inflation lead to people buying assets and home prices, stocks and crypto accelerated in price.

So the opposite will be true. It’s more expensive to borrow money so people will buy less stuff and prices will decrease. However in speculation there can always be bull markets and bear markets, so we will see what 2024 will bring.

I think it was the opposite. I even search it and it seems I am right. It is said that low interest rate means more spending for the people or in other words, less inflation. If the value of the peoples money is huge, they can be able to buy or invest more but you are still right that there are still more people who invest during an inflation but it would be better if people don't wait for it to happen.

Another benefits of investing early is we can earn big income once the price rise more. Bull and Bear markets are already there. They are part of the market and they can come no matter what but I think outside events can affect if how big or small the value that they will provide.

[Pejoh Asu]

Could the next Bitcoin halving potentially result in a price increase that is different from previous patterns, where low interest rates were a key factor behind the price surge?
Some argue that because the last halving occurred during a time of very low interest rates, this dynamic might not repeat in the upcoming halving.
Can anyone explain how interest rates influenced the past halving's impact on bitcoin's price and whether this could challenge the expectations of a price increase in the next halving?

At present the increase in bitcoin is difficult to guess, many factors can affect the increase in bitcoin, halving day that occurs before success makes a significant increase in prices and our hopes will certainly happen again, many things can affect the increase, and in my opinion low interest rates can be a reason People divert the investment to Bitcoin so that the price surge occurs.

[Mate2237]

Most people predict the price of bitcoin from the previous years and some are close to their prediction, some failed and some were correct. And since the market is unpredictable the next halving is also like that. And now that the price of bitcoin is going down again the halving might begins late this year or second quarter of next, if it doesn't happen late this year then it will not occur early next year.

And from now till December this year is one of the opportunity or the best time to invest in bitcoin because after the halving we will start the bull. Though this coming halving and the bull is my first time in bitcoin cryptocurrency Ecosystem so I don't have too much to say for now. Let me see what will happen then I will also have enough things to say.

[YOSHIE]

Can anyone explain how interest rates influenced the past halving's impact on bitcoin's price and whether this could challenge the expectations of a price increase in the next halving?

Indeed interest rates are always associated with investment, of course the two have something to do with each other, low interest rates can make investors busy choosing to invest, hoping to get big profits.

Of course interest rates can affect investment, if you look at it from the side, as below.

Fluctuating interest rates can have a large effect on capital markets, inflation, and the economy as a whole. This is why the influence of interest rates and investment is vital.

However, don't get me wrong in responding to the quote above, it applies to those who invest in foreign Paluta and fiat forms, it doesn't apply to the crypto market.

As a whole if you look at the various speculations that have occurred about Bitcoin halving, of course interest rates are not a reason to rise for the price of Bitcoin, there are other things that are speculated about the future halving, so interest rates are not the main basis for changes in Bitcoin prices, even if halvings occur.

[justdimin]

Can anyone explain how interest rates influenced the past halving's impact on bitcoin's price and whether this could challenge the expectations of a price increase in the next halving?

Indeed interest rates are always associated with investment, of course the two have something to do with each other, low interest rates can make investors busy choosing to invest, hoping to get big profits.

Of course interest rates can affect investment, if you look at it from the side, as below.

I agree, interest rates are not the only reason but it is also not nothing anyhow, its going to matter. We could see it change and in order for us to see it change, we need to first see the halving. Without living at least 1+ year of halving, we can't say if interest rates will have any impact on it or not, we could make assumptions but we can't exactly know what's going to happen, and we should reach to a point where its a lot better and we can do a lot better with it as well.

This is of course a situation that will take some time, but it is still possible and it could make it worthwhile as well. Live to see it is the greatest result checker, because it already happened in that moment and you get to see if it was true.

[yhiaali3]

Personally, I do not see that interest rates had a significant impact in the past halving on the price of Bitcoin, at that time there was not much change in interest rates so there was not a significant impact.

The main reason for the high rise at that time was the acceleration of the adoption of Bitcoin by large institutions and the increase in demand dramatically. Do not expect that the price will rise as soon as halving, because even if the value of rewards decreases by half, the halving effect will only appear when the supply in the market decreases and demand increases, and this takes some time.

Therefore, I can say that even with an increase in interest rates, if there is a large demand for Bitcoin, the price will increase, and vice versa, that is, if the interest decreases and the demand decreases, the price of bitcoin will not increase.

[AakZaki]

Personally, I do not see that interest rates had a significant impact in the past halving on the price of Bitcoin, at that time there was not much change in interest rates so there was not a significant impact.

The main reason for the high rise at that time was the acceleration of the adoption of Bitcoin by large institutions and the increase in demand dramatically. Do not expect that the price will rise as soon as halving, because even if the value of rewards decreases by half, the halving effect will only appear when the supply in the market decreases and demand increases, and this takes some time.

Therefore, I can say that even with an increase in interest rates, if there is a large demand for Bitcoin, the price will increase, and vice versa, that is, if the interest decreases and the demand decreases, the price of bitcoin will not increase.

The high adoption of the previous Halving that made Bitcoin increasingly known certainly supported Bitcoin to reach ATH. There will be many factors that can affect Bitcoin reaching ATH or not. The new interest rates implemented always put an emphasis on the price of Bitcoin, but that is only a temporary effect. We will see how Bitcoin will be, 2024 will be the year that everyone has been waiting for. It has the same effect or not depending on how the demand for Bitcoin and supply is getting less, this does take time and cannot be seen immediately.

[bitgolden]

Indeed interest rates are always associated with investment, of course the two have something to do with each other, low interest rates can make investors busy choosing to invest, hoping to get big profits.

Of course interest rates can affect investment, if you look at it from the side, as below.

I agree, interest rates are not the only reason but it is also not nothing anyhow, its going to matter. We could see it change and in order for us to see it change, we need to first see the halving. Without living at least 1+ year of halving, we can't say if interest rates will have any impact on it or not, we could make assumptions but we can't exactly know what's going to happen, and we should reach to a point where its a lot better and we can do a lot better with it as well.

This is of course a situation that will take some time, but it is still possible and it could make it worthwhile as well. Live to see it is the greatest result checker, because it already happened in that moment and you get to see if it was true.

I agree that it is not nothing but also it is not as important as people make it seem like. I mean every time there is a FED call about the interest rates, bitcoin reacts to it so giantly that you would think that it matters the most out of anything. It's not, it is not as important as people think and yet for some reason those same people end up using it like crazy. I get that it will not be simple but you should not be really forgetting how important it is as well.

I think it should be important on the long run. I get that we are not going to end up with a bad result one way or another, so we should not really trust FED interest rates and trade accordingly like all these people, just keep on buying as much as you can.