Bitcoin Halving is a process of reducing the production of new bitcoins by half every four years. It is a major event in the cryptocurrency world because it has a direct impact on the supply and demand of Bitcoin and its price. This event was built into the Bitcoin code from the beginning and it is an essential part of maintaining the value of Bitcoin in the long run. CryptoNewsHerald is here to provide the latest news and updates about Bitcoin Halving and its implications for the cryptocurrency market.
The first two halvings in the bitcoin network were accompanied by increased volatility of the coin over the next 1-1.5 years: the price of the asset could rise from $11 to $1,100 or from $230 to $20,000 – and fall 5 times. Regarding the impact of the third halving on the price of the flagship of the crypto market, experts’ opinions are divided. Some expect growth, others – the absence of significant changes.
At Digital Asset Research considerthat in May 2020 bitcoin could rise to $60,595 per unit. The assumption is based on an analysis of the behavior of the price of bitcoin in cycles between previous halvings. It turned out that at the end of the cycle, it grows due to the growth in demand for cryptocurrency and reaches peak values in the first third of the cycle, each time rising to a new historical maximum. The researchers believe that if the pattern they identified repeats, a new peak in the price of bitcoin will occur in September 2021, and at the next halving in 2024, it will reach $732,256 per unit.
The German bank Bayerische Landesbank came to the conclusion that the upcoming halving will allow bitcoin to get closer to gold in terms of such an indicator as the stock-to-flow ratio (Stock-to-Flow, S2F). Gold has an S2F of 58 and will not be much higher by May 2020, while Bitcoin will rise from 28.5 to 53, making the price of $90,000 per unit possible. If the model proposed by the bank’s specialists turns out to be correct, the 2024 halving will increase the strength of bitcoin to an unprecedented level in human history: a level of over 100.
On the other hand, analysts at the American company Strix Leviathan notethat on the eve of the halving, the media actively recommends users to hold bitcoins, and the rise in prices in the associated period can be explained by the illusion of an increase in the value of the asset against the backdrop of increased speculation.
Bitcoin Halving is an important event in the Bitcoin ecosystem. It allows for the supply of Bitcoin to be reduced, and this helps to keep prices stable and equitable. The halving also serves to reward miners for their work in helping to secure the network. It is an event that is eagerly awaited by miners, investors, and the Bitcoin community as a whole. By ensuring a limited supply of Bitcoin, the halving helps to keep the Bitcoin network secure and reliable.