Topic: Low Interest Rates Impact Bitcoin's Next Halving Price Surge? - page 2. (Read 291 times)

Interest rates haven’t had a huge effect on Bitcoin in its lifetime mostly because the government hasn’t had to respond to a major issue with rate changes like we saw in 2007/2008. This may change however, as rate increases may push us into a major recession. If that does happen you will see demand for Bitcoin likely dry up and the price effected. However, if rates are aggressively lowered and we avoid a nasty recession it could be off to the races with cheap money.

We have had 3 halvings and the last of them recorded the lowest price returns, you cannot then attribute that price surge to low interest rates.
Interest rates could have been a factor but not a major one.

It had an impact cause it allows people have more money to spend on commodities like Bitcoin, increasing the demand.
It does not challenge expectations of a price increase and there is not enough link to draw any correlations.

- Jay -

The only way I see the low interest rate benefiting Bitcoin is as a result of investors having the chance of getting a huge amount of loan that is given out to them with a lesser requirement for collateral, and the time for repayment is enough for the investors to gather up the borrowed amount without thinking about how much interest will be attached to it. Which makes it easier for them to always be able to grab a loan from the Banking sector and use such a loan to grab Bitcoin in preparation for the halving, and this buying opportunity usually increases demand, which in turn brings about price positivity.

I don't think the next year's halving will have to depend on anything relating to a low interest rate before it can pull off a bull market, as it is already certain that the bull run is going to come, not exactly in the year of the halving but in the coming year after.

Low-interest rates played a major role in increasing the price of Bitcoin during the last halving, some of the money that was printed in 2020 found its way into Bitcoin, Gold, and real estate. When the rate is lowered, risk asset benefits because investors would want to borrow money from banks at a low rate and invest in assets that appreciate over time. For instance, Michael Saylor borrowed and invested in Bitcoin when the rate was zero. Generally, it has a positive influence on the market.

Low interest rates means people will start to borrow more money because now they have to pay less interest and with less interest their will be more money in circulation too. With that money most of the people start to invest in BTC or in any other thing. But if they are investing in BTC as more money is in the market then more money is going into the BTC and more BTC are being demanded but the supply remains the same.

Due to which it surges up the price of BTC. But do not worry if Interest rates are not going to decrease this time but even though there are ETFs which will help BTC to surge up with more heat. Because They are keeping delaying the ETFs and i think they are doing it on purpose just to approve all of them at the right moment when BTC need ignition to the moon.

There are few major factors you need to watch out for that will create a massive surge in price after the halving ... Just hope they happen simultaneously during the halving period:

1. The promotion of Bitcoin by very influential people. This is needed to ensure that demands is strong when supply is lowered. By the way, Bitcoin bull run is nolonger influenced by worthless fundamentals such as an increase in adoption through centralized platforms/exchanges. Bullish fundamentals are those that are based on the Bitcoin ideals such as decentralization, transparency, immutablity, censorship resistant, deflation, etc. The influencers must be people who are idealistic.

2. Good development in the Bitcoin space, such as an improvement in the Bitcoin Project that's very significant and useful. The improvement has to expand the utility of Bitcoin without compromising on its ideals. Again, the improvement has to be based on the Bitcoin ideals to power up the price.

3. The demand for Bitcoin has to from the good side, and the demand should outweigh supply from the good side. If demand is from things that are contrary to the Bitcoin ideals, it's considered bad demand and won't have any positive effect on the price. If supply is lowered via the halving and demand remains constant, price will increase significantly because demand will be greater than supply.

Low-interest rate increases the money supply and decreases the price for individual and business borrowing increasing economic activities. When this happens individuals and corporate bodies have more money to invest in cryptocurrencies and other areas. High-interest rate force investors to focus on fixed-income investments or safe-haven assets such as government bonds. In recent times there has been a correlation between the price of bitcoin and the US interest rate but this relationship is weak. But low-interest rate is not the only factor that contributes to the increase in the price of bitcoin during halving so I don't expect it to greatly affect the increase of the price of bitcoin during the season.

Interest rate has no effect than fiat to devalue over time and bitcoin price will rise as the demand will increased some weeks to halving and the price will still increased many months after bitcoin halving. Do not let anything or anyone to distract you if you want to invest in bitcoin, you have nothing to worry about and do not compare fiat with bitcoin.

In long term, there are links between inflation and bitcoin. This is the second reason we should not also have money in fiat but in bitcoin instead. The more we go in time, the more fiat are devalued.

This your post will be better fitted in the speculation board than bitcoin discussion.

Bitcoin market and its effect is uncertain and doesn’t have a general guide that’ll determine what will happen next to bitcoin price. Talking about low interest rate having an effect on the price surge in the last halving, it could not be the same this time again or what we expect won’t turn out to be so. Since the inception of bitcoin, this is a trend that at every halving, the price of bitcoin will increase and it is still following that pattern and I don’t think even in the next halving there is going be an exception to that. Bitcoin will surge again in price with either low or high interest rates.

With my practical knowledge of inflation and investments in assets like Bitcoin, I advise you to invest when there is a good and obvious reason for a bull run and be sure to let your technical chart confirms it on the higher timeframes before taking action.

Specifically, halving is a Bitcoin tradition that has had a track record of influencing Bitcoin in the past with no regard for the prevailing inflation (obvious reason). This same thing will most likely happen in the coming halving and even happen significantly more especially this time that people are more aware of the opportunity, and money will flow in. Bitcoin will spike higher within months irrespective of the status of inflation.

And like I always warn, people should stop making links between inflation and Bitcoin, they should rather view it as an asset and as an investment opportunity. In my own studies, Bitcoin and Inflation don't just relate proportionally as it could fall or rise during inflation. Just own your coin when we are in the bullish season, and you might also want to divest when we are in the bearish season.

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?