Contrary to the popular media narrative, new research finds that Bitcoin and Litecoin prices are unimpacted by block reward halvings.
2012: 10m before halving btc $5, at halving $12.2016: 10m before halving btc $237, at halving $627 pic.
Publications, including CryptoSlate, pinned the price increase on the upcoming halving.
Research conducted by Nico Cordeiro and Ava Masucci from Strix Leviathan, a Seattle-based startup that specializes in engineering and operating trading algorithms for the cryptocurrency markets, challenge the belief halvings materially impact coin prices.
The researchers analyzed 32 halvings across 24 cryptocurrencies and compared these to an overall market benchmark.
Performance of each coin was evaluated six months before and after each halving and compared against cryptocurrencies not going through a halving event in the same timeframe.
"The divergence and seemingly random results before and following a halving suggests that the underlying factors driving price is not a shift in supply and demand dynamics."
Historically, variations in price should increase during a halving period.
The researchers found that coins undergoing a halving event did not experience outsized volatility, or returns, before or after a halving.
"What we find is that the return distribution of an asset's halving periods versus the return distribution outside of its halving periods reveals that they are statistically the same at a 99 percent confidence level. In other words, we did not find evidence that a halving event results in abnormal pricing action and we are dealing with a circumstantial illusion."
Research finds Bitcoin and Litecoin halvings do not impact price
gepubliceerd op Jul 22, 2019
by Cryptoslate | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.