Analysts are going crazy thinking about what May 12’s bitcoin halving will bring to the table. Another bunch of analysts have rung in with crazy predictions, and some believe the currency will extend beyond the all-time high it reached in late 2017.
The Halving Will Take BTC to New Levels
Three years ago, bitcoin was on a rally unlike anything traders had ever seen. Each month brought on new gains of hundreds to thousands of dollars, and by the end of the year, the currency was trading for close to $20,000 per unit. Sadly, the asset would later spend the following year undergoing serious crashes and falling to the mid-$3,000 range, thereby losing approximately 70 percent of its overall value.
In the end, the 2017 rally is considered something of a fluke that’s never quite been witnessed again in the crypto space, but now traders and analysts alike believe the asset will reach the $20,000 level again by the time the halving is complete. They believe that after May 12, big numbers are going to show their faces.
Ada Vettese – a U.K.-based market analyst for crypto exchange e-Toro – explained in an interview:
The bitcoin network has seen its hash rate, which measures the computational power within the network, rocket back near to all-time highs… The hash rate measures how much computer processing power is being put to work at any one time by the whole of the bitcoin network, and it always rises and falls in reaction to miners’ contributions to the network. With the halving event just days away, the network has seen the hash rate climb just below the levels seen in February. The jump comes as bitcoin and other crypto assets continue to see prices climb higher. Both bitcoin and Ethereum have rocketed in recent weeks, and bitcoin is this morning back above the $9,000 mark, while Ethereum is at $205.
This will be bitcoin’s third major halving since it first emerged in 2008. The rewards that miners are set to receive for extracting new bitcoin blocks will be reduced to 6.25 from 12.5. They’ll be cut in half, hence the word “halving.”
George McDonaugh – co-founder of blockchain and crypto investment firm KR1 – explains:
Narratives in the world of blockchain act like the force in ‘Star Wars.’ They mysteriously move and shape the market. You couldn’t be blamed for getting a little excited about what’s to come.
Some Big Price Additions
Antoni Trenchev – co-founder of crypto lending firm Nexo – stated in an interview:
Critics can disparage bitcoin as much as they like, but it’s by far the best performing asset of the past decade. We’re bullish about its future.
He later predicted that the currency could potentially reach $50,000 by the time 2020 is over. To do that, however, bitcoin would need to add approximately $41,000 to its price in about seven months.