Will Canny is CoinDesk's finance reporter.
Previous halvings were accompanied by other cryptocurrency ecosystem catalysts that acted as tailwinds.
The growth of investors using bitcoin as a macro hedge has reduced volatility this cycle, the report said.halving is more likely to be driven by macroeconomic factors even as crypto fundamentals remain strong, Coinbase said in a research report on Thursday.The recent elevated correlation of altcoins to bitcoin underlines this, Han wrote, “indicating BTC’s anchor role in the space even as BTC firms its position as a macro asset.
While previous halvings have historically kickstarted a bull market, “these cyclical runups have often been accompanied by other ecosystem catalysts that provide additional tailwinds,” the report said.
The growth of investors that use bitcoin as a macro hedge partly explains the reduced magnitude of pullbacks this cycle, the report added. Wall Street giant Goldman Sachs expressed similar sentiment in a report last week. It said “caution should be taken against extrapolating the past cycles and the impact of halving, given the prevailing macro conditions.”in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.
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