It’s hard to know where bitcoin will go from here. While the last few days have been relatively positive in that bitcoin has spiked beyond the $6,000 line – more than $1,000 from where it stood previously – the currency still faces a very strange and unpredictable future given the amount of political uncertainty that exists due to the expanding coronavirus pandemic.
Where Does Bitcoin Go From Here?
In addition, the currency is set to undergo a halving in May that many analysts and enthusiasts alike don’t know what to make of yet. For example, it’s always been believed that a halving will result in a serious price hike for the cryptocurrency at hand, in this case bitcoin. In the past, bitcoin has shot up whenever a halving has occurred on account that it becomes rarer and more valuable.
However, it’s unclear if these same results will repeat themselves, especially now when bitcoin appears to be at its most vulnerable point in some time. Recently, the currency fell from trading over $10,000, meaning that while its present price is something of an improvement over where it stood last week, for example, bitcoin still has a way to go before it fully heals itself.
Could the halving result in further drops? Will bitcoin continue the present streak it’s been following over the past few weeks? Will any spikes or gains during this time be relatively mediocre, and will people be disappointed in what occurs?
One analyst offering a unique take on the entire scenario is Tone Vays. Along with people like Willy Woo – who has been predicting a serious drop in the BTC price since last November – Vays believes that the currency could fall heavily before the halving occurs in two months. In fact, he’s confident the currency could fall to as low as $2,800 before any serious improvement is made.
In a statement, he explained:
I have always anticipated [a price drop] before the halving – so it’s getting there, even if it’s a few weeks before the halving, I am perfectly fine with it.
One of the reasons the halving may fail to live up to present expectations is that miners are already missing out on much needed funds. So long as the bitcoin price continues to fall, the rewards for mining new bitcoin blocks are likely to be significantly decreased, meaning miners are likely losing a lot of money by keeping their machines operational. We may see a lot of mining closures before the event takes place.
Miners May Leave Early
On-chain analytics platform Glass Node explained in a tweet:
Due to the declining BTC price, it is now unprofitable for many miners to continue their operations. Since its peak on March 7, the 7DMA of bitcoin’s hash rate has fallen by about 16 percent, with hashing power disappearing even faster after the drop to $5K.