Halving in crypto affect the market with different ways. After Halving there is a possibility of price change which leads to difficulty for investors. Near the halving time, investors and traders buy the coin that causing the price to up before halving. But after the halving cycle, the whales and traders exit the coin due to which the value of coins goes down.
Another reason for the coin price to fall is that when investors see that the halving has no effect on the current price, we sale our holding coins, which cause temporarily price down. Before halving, we set the price in our mind to be very high, but in some cases, it doesn't happen, so we get frustrated and sell the coins.
Wise investors invest their money in coins first near the halving. Closer to halving, the price raise gradually. When they find their target and place the sale target and then they sell their coins. Price fluctuations after halving can happen due to different factors, including investor behavior and expectations.
Some investors may sell their shares before the dividend date to secure their profits. This selling pressure can cause the price to go down, leaving others who invested near the dividend date stuck with their shares.
It is essential to understand that halving's impact on cryptocurrency's, long-term price trajectory is more intricate. While there might be short-term fluctuations, other fundamental factors, market sentiment, adoption, technological developments, and macroeconomic trends can also significantly influence the overall price movement over time.
Holding a coin for the long term may be beneficial, as sometimes the price can go upward even after a month of halving. Predicting exact price movements can be challenging, so diversifying your investment strategy and considering various factors beyond halving is wise.