Coinbase Warns of Challenges Ahead for Bitcoin Halving Amid ‘Weak Time of Year’
Coinbase has warned that the time of year could pose challenges for an upward momentum as traders await a price surge ahead of Bitcoin (BTC) halving.
In its market commentary report released on April 5, Coinbase emphasized the need for the crypto market to find alternative narratives to propel prices higher.
The Bitcoin halving, scheduled for around April 20 or 21, has often been considered a catalyst for price increases.
However, Coinbase highlights the historical weakness of crypto markets and other risk assets during this time of year.
Data from digital assets research firm Brave New Coin reveals that, since 2011, Bitcoin has experienced average monthly returns of approximately 2.7% from June to September.
In contrast, the remaining eight months have seen an average return of around 19.3%.
Coinbase also noted that crypto volumes have been slowing down as the market searches for the next driving force.
Over the past 24 hours, total crypto volume stood at $61.78 billion, representing a significant 33.25% decrease from the previous day, according to CoinMarketCap data.
Despite these challenges, Coinbase identified potential signs indicating an influx of new investors into the crypto market.
The exchange suggested that Bitcoin’s growing acceptance as a form of “digital gold” could attract a new subset of investors.
Currently, Bitcoin’s dominance in the overall crypto market stands at 50.6%.
Furthermore, Coinbase predicts that dips in prices may be more aggressively bought compared to previous cycles, even as volatility persists during price discovery.
As more investors enter the market, the troughs in price declines could become shallower.
Halving events have historically been associated with surges
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