Bitcoin Halving: Popular crypto price is on the move
As the Bitcoin halving date is nearing, the price of this dominant cryptocurrency is on the move. The third Bitcoin halving date is 11th May 2020, almost after four years of second halving in 2016. To summarize the concept of halving, it is a process where mining reward is reduced to half. Halving is done to maintain the supply of Bitcoin, which is capped at 21 million. So, why Bitcoin halving has become such a big deal? Why crypto fans are so excited even though COVID-19 Pandemic is not showing any signs of slowing down?
Simply put, Bitcoin’s earlier two halvings in 2012 and 2016 resulted in price gains, preceding and immediately after the due date. Now it remains to be seen if there is the same magnitude of gain. But as of now rebound from March lows is exciting crypto fans from around the world. Experts believe the recent rally is inspired by upcoming Bitcoin halving or because the improvement in the financial picture will be clear in the coming few days. However, there has been an uptick in various other metrics for Bitcoin, which is encouraging crypto fraternity.
Bitcoin Price Trends
As of now, 2020 has been an eventful year for cryptocurrency. The pandemic news drew blood out from both financial and crypto markets initially. However, in the last few weeks, crypto price trends staged a smart rebound, garnering attention from all sections. Presently the price trend is gaining momentum as halving is nearing. The magic $10K figure mark is near; halving is considered to be the catalyst that is making it possible.
With Bitcoin halving date almost near, Bitcoin mining difficulty is reasonably rising. The best fiat crypto exchange is getting a good response as fans are expecting the next crypto bull run. At a time when the global pandemic is creating concerns everywhere, Bitcoin price trends are giving site of relief. After the third Bitcoin halving, block rewards will reduce from 12.5 BTC to 6.25BTC. This will reduce the new BTC entering the market from around 1,800 to almost 900 a day. Following this event there is huge competition among miners; things will start getting difficult and highly competitive in days to come. Miners from around the world are trying to make as much possible before their rewards get halved.
In the next few days, a lot of doubts will finally be answered. Off late, the debate has raged openly among the crypto community and beyond, how Bitcoin price trends will change after halving. There are compelling arguments from each scenario, but as the moment is approaching voices from every scenario is increasing. It is becoming difficult for experts to assess what will happen in a few days because there have been only two such models in the entire twelve-year Bitcoin history.
It is true that when crypto prices are high miners hoard, releases only what they have to and keeps the remaining for future. On the other hand, it is also true that miners sell everything when Bitcoin price is high to maximize all their returns. So it is tough to presume the series of events following Bitcoin halving, but the dominant cryptocurrency is surely encouraging crypto fans from around the world now.
Analysts are struggling to make sense from the available date, trying to find likely outcomes and understand the present crypto price behavior. The conclusion is uncertainty now; hold your breath for a few more days.
Keep fingers crossed as we near 11th May. Do share your views with us. Let us know your take on Bitcoin Halving and its impact on recent price trends.