According to Google Trends, the phrase “Bitcoin halving” has hit its new all-time high of 100 ahead of the well-known bitcoin halving process which is expected to happen around the 12th of May 2020. On Tuesday 21st April 2020, the phrase rises exponentially hold a score between the 90 to 100 range on that day. The following day the market value of bitcoin showed a spectacular gain and is increasing, according to Tradingview.com Although bitcoin has recovered from its March low of $3,867, it’s still rallying to regain its 2020 market high. Bitcoin is currently showing a flexibility in price movement, which may or may not be related to the bitcoin’s mining reward halving that takes place in a few days.

What is the Bitcoin Halving Event?

The answer to that question is already in the name. However, it is splitting the value of the bitcoin in half in a way that mining the cryptocurrency only generates 50% of the yield. As a result, the rate at which the new bitcoins are generated decreases. Every four (4) years Bitcoin undergoes this halving process that reduces block rewards whenever 210,000 blocks have been mined in order to control inflation. The event was created in a blockchain by Satoshi Nakamoto in 2008.

Another Increase in Price and Market Volatility?

In prior events, the bitcoin halvings have resulted in sudden increases in price and market volatility for the cryptocurrency and other cryptocurrencies. After the 2012 halving event the bitcoin’s value rose by 80 times, while in 2016 it rose about 300% in value. The best explanation for these types of changes is the basic economic principle of supply and demand displayed by the traders and miners. Taking our current economic situation in mind, more than 50% of bitcoin traders and miners think the price of bitcoin will increase after the halving, according to a survey by Genesis Mining. Other estimates even boldly indicate that the price will increase above twelve (12) thousand dollars per bitcoin.

With a great probability of bitcoin increasing at every halving process, holding on to your bitcoin looks like the best possible decision despite the current world meltdown.