Bitcoin long-term recovery is looking at Bitcoin halving coming in 2020 that is expected to be massive as experts believe BTC offers a healthier scenario and history have shown us twice the propensity of halving to take Bitcoin to tremendous highs.
Bitcoin halving: A massive bull rally?
In about two years, we’ll be back to the event that brings with itself anticipation, prediction, and uncertainty. As long as the mining hash rate doesn’t change the scenario, it will be happening on May 27, 2020. This will mean the coin reward for mining new bitcoin blocks will drop down to 6.25 Bitcoin from 12.5 Bitcoin now. This already has the people trying to predict the Bitcoin price as a result of this halving.
Bitcoin halving occurs after every four years or the mining or confirmation of every 210,000 blocks. The first Bitcoin halving took place in November 2012, 12 months after which Bitcoin reached its all-time high of that time i.e. $1,000. The last one happened on July 9, 2016, 17 months after which Bitcoin price rallied to $19,500 in December 2017.
Since December bull rally, the price has constantly dropped down. But if we take a look at the history, the same thing happened before leading to another halving. Though history never brings a clear or sure picture, financial and Bitcoin experts alike believe the traditional market price moves in a similar manner with respect to interest rates and commodity supply changes as well.
Long recovery: Healthier market condition
Bitcoin and crypto enthusiasts are trying to see the effect of halving on Bitcoin price. Once such enthusiast shared a creative graph for the same.
Bitcoin long term price prediction, with the ‘halving’ effect factored in. What do you think ? pic.twitter.com/LLrPqtY4FN
— Kunal Sen (@KunalDaSen) August 13, 2018
On which, the popular crypto analyst Will Woo shared,
“Another view on a long recovery. Worth bearing in mind ‘14-‘15 was detoxing from a MtGox collapse; traded 90% of world volume. Plus 1/8 of all BTC stolen plus Willybot pumping prices. Systemically, Bitcoin 2018 is much healthier than Bitcoin 2014.”
Bitcoin analyst, Glen Goodman stated:
“Previous halvenings have shown the negligible impact on Bitcoin’s price. This is because — rather like a much-anticipated interest rate cut — everybody already knows it’s going to happen way in advance.”
As per Chris Wilmer, a professor at the University of Pittsburgh shared,
“Historically the cut has had a very little immediate impact, although the price usually rose after.”
Bitcoin halving basically reduces the block rewards that means a decrease in the miners’ revenue but for that, the difficulty level needs to be substantially unchanged. In that scenario, the price of Bitcoin plays an integral role as if the price takes a surge well enough to offset the revenue drop, it is likely hash rate won’t be rising.
According to Garrick Hileman, the head of research at Blockchain and co-founder of Mosaic:
“Cryptocurrency markets are often very event-driven, and as we get closer to the next halving bitcoin price will receive a boost from those anticipating the forthcoming reduction in new supply. In the months leading up to the last two halving events, we saw bitcoin’s price steadily trend upward, and then power higher following the reward halving.”
“Miners have historically shown a willingness to maintain or increase computing power through halving events because they expect future bitcoin price increases to offset the reduced block reward,”
further added Hileman.
Everyone is hopeful of the coming up Bitcoin halving, expecting it to hit new and bigger highs than 2017’s $19,500. What do you think of this event? Will it take Bitcoin to a new peak this time as well?
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.