The halving is set to occur in the next 11 days, and bitcoin analysts and enthusiasts are waiting with bated breath. They’re excited and eager to see what’s going to happen with the world’s number one cryptocurrency by market cap.
The Bitcoin Halving Is Setting the Stage
Danny Scott – co founder and chief executive of crypto exchange Coin Corner – explained in an interview on Thursday:
Coming up in 12 days is the bitcoin halving – which in short cuts the supply of bitcoins coming into circulation in half and taking it from 12.5 bitcoins every ten minutes to 6.25 bitcoins every ten minutes. People are looking at bitcoin’s history and seeing how the supply and demand vector has played out for bitcoin in the past, with the price steadily rising after a halving to new all-time highs within 18 months. After the two previous halvings, we’ve seen the price reach an all-time high within three to nine months, which would be $20,000 in this case. Looking at the stock-to-flow (S2F) model which assumes scarcity drives value (supply and demand), we can hope for the $100,000 region to hit within the next 12-18 months.
The halving history of bitcoin is quite impressive. When the currency was first around, miners got as many as 50 bitcoins for every block they mined. When the amounts of BTC in circulation surpassed 200,000, a halving occurred to bring the rewards down by 50 percent. This latest halving shows how much digital rewards have been downgraded in recent years.
Dr. Garrick Hileman, head of research at Blockchain.com, explains:
Bitcoin’s price has been climbing of late alongside other traditional hard assets like gold in part due to concerns over the size of the monetary and fiscal response to COVID-19. Anticipation of the May 12 bitcoin mining reward ‘halving,’ which will cut the supply of newly minted bitcoins in half, is also likely fueling demand. Over time, if current bitcoin demand levels are maintained, then this reduction in new supply may help boost bitcoin.
There was some initial fear back in early March when the crypto market began to tank following the coronavirus pandemic that the halving would hurt bitcoin’s status even more. After all, the currency was slipping harder than anyone could have anticipated, and with the further reduction of rewards, many believed that miners would ultimately vanish without a trace, leaving the crypto space in darkness.
Things Are Moving Up
But the opposite appears to be occurring at press time. Many more people are jumping into the fray and purchasing up digital assets quickly in anticipation of BTC reaching its all-time high all over again in the coming weeks.
Pavel Perelomov – chief executive officer and founder of the blockchain platform Twigse – explained that he sees bitcoin reaching $10K no problem very soon.