As the Bitcoin halving event approaches in April, Coinbase, the leading cryptocurrency exchange in the United States, has released a new report. The report from Coinbase predicts that Bitcoin's impressive performance will persist before and after the halving.

Based on historical data, Coinbase highlights that Bitcoin has historically shown strong performance leading up to and following previous halving events. The report emphasizes the impact of reduced Bitcoin supply post-halving on its price surge, urging investors to approach these historical trends with caution.

Coinbase's analysis reveals that Bitcoin's price surged by an average of 61% in the six months preceding past halvings, followed by an average increase of 348% in the subsequent six months. Despite these trends, Coinbase advises investors to exercise prudence due to the speculative nature of predicting Bitcoin's performance solely based on historical patterns.

While acknowledging the potential positive influence of halving on Bitcoin's value, Coinbase underscores the significance of external factors like macroeconomic conditions. The report notes that Bitcoin's notable performance after the 2020 halving was influenced by loose monetary policies and substantial fiscal stimulus in response to the Covid-19 pandemic.

Conclusion:

In conclusion, Coinbase's report suggests that the Federal Reserve's anticipated interest rate cut in May could further bolster Bitcoin and other risky assets. This expectation of a rate cut is viewed as a favorable development for assets like Bitcoin in the current economic landscape.