Bitcoin investors are getting ready to halve by the long-awaited 2020 – supply pressures that will make the number of new bitcoins made cut in half.
The price of bitcoin this week has jumped by almost 20%, surpassing $ 9,000 per bitcoin for the first time since the end of February, due to excitement to build half of this month.
Now, when the market weighs whether a third bitcoin supply cut is valued, one closely watched crypto analyst says he thinks it's “likely” that bitcoin prices will rise above the psychological limit of $ 10,000 before May 12 halves.
“We think the price of [bitcoin] will rise above $ 10,000 before half of it actually happens,” said Simon Peters, a bitcoin and cryptocurrency analyst at broker eToro, pointing “the frenzy of activity among bullish investors.”
“While the half itself always tends to raise prices, bitcoin bulls have decided not to wait and position themselves far ahead,” Peters added.
In just ten days, the amount of bitcoin awarded to those who maintain the bitcoin network, known as a miner, will be halved for the third time, down from 12.5 bitcoin per block to 6.25.
The termination of bitcoin is scheduled to continue approximately once every four years until a maximum supply of 21 million bitcoin has been generated by the network – something that is not expected to occur until the coming century.
Peters also cited a number of “attractors” who could drive the price of bitcoin over the next few weeks, including miners holding their new bitcoin, new users who bought bitcoin, and fear of inflation that pushed people towards crypto.
“As for how high it can be in the long term, amid the deteriorating economic outlook for the US economy and the possibility of an ever-increasing monetary supply, which weakens the US dollar and triggers inflationary fears, we believe it can easily test previous highs above $ 19,000 as investors seek a safe haven from traditional assets, “Peters said.
While the previous half has signaled a boom in bitcoin prices, prices will not necessarily rise close to them.
“In 2016, I did not participate in half and all things considered, it was a small event. The real rally took place 18 months later,” said Catherine Coley, chief executive of BinanceUS, part of bitcoin and the world's largest crypto exchange by volume, Binance, adding him “bullish” on long-term bitcoin.
The year after half of 2016 bitcoin, the price of bitcoin jumped from under $ 1,000 per bitcoin to around $ 20,000 in less than 12 months.
Meanwhile, BinanceUS has reported a surge of new users in recent weeks because the Federal Reserve is working hard to prop up the economy, which has been damaged by a lock caused by the corona virus.
“With unemployment and stimulus funds flooding the system, I think more people are looking for alternative exposure to markets that are not linked to [the US dollar],” Coley said.
source : forbes.com
