Bitcoin's post-halving performance is its worst in history, failing to deliver the expected 'hype' phase rally. The cryptocurrency is currently trading below $60,000, according to CoinGecko data.
The halving event, which occurs every four years or 210,000 blocks, is typically bullish due to reduced supply and increased demand. Historically, each cycle passes through three phases: hype, disillusionment, and enlightenment. The hype phase is characterized by rapid price appreciation, while the disillusionment phase sees severe drawdowns and sideways grinding.
This cycle has been marked by a lack of traditional hype, with Bitcoin struggling to gain momentum. In contrast, previous cycles have seen significant returns for investors who acquired BTC at the time of the halving event. However, this time around, investors are sitting on net negative returns, which is unprecedented.
The current situation has been attributed to various factors, including concerns about a potential interest rate hike and the crisis surrounding Strategy, the leading corporate BTC holder. Galaxy CEO Mike Novogratz recently opined that the cryptocurrency market is suffering from these issues.