The "rally" recorded by the "king" of cryptocurrencies will continue, after the third halving.
The "rally" recorded by Bitcoin in the last month makes the market move "in the wave of bulls".
The strongest cryptocurrency had several ups and downs in 2020, as after the "dip" to $ 4,000, it reacted immediately and moved higher, now reaching the range of $ 11,000.
The data for Bitcoin have changed due to the growing demand from institutional investors in the market, the third halving that took place on May 12, but also due to the correlations with gold that continue to move at record levels. Now the cryptocurrency community expects a stronger and more stable course for Bitcoin, as interest in an alternative form of money is rekindled and governments are stepping up stimulus packages because of the pandemic.
According to Mike McGlone of Bloomberg Intelligence, Bitcoin should reach the $ 14,000 area after the third halving, which is approximately at the highs of the previous year. However, he added, Bitcoin could move even higher than that target.
"Bitcoin will reach a record $ 20,000 this year if it follows the 2016 trend of the second halving."
At the same time, JP Morgan pointed out in a recent report that the "Millennials" strongly support Bitcoin, as an "alternative" currency in the way that the largest investors see gold.
But what is Bitcoin halving?
The "inventor" of Bitcoin, nicknamed Satoshi Nakamoto, has decided that only 21 million Bitcoins should be on the market in order to "feed" gradually and ensure a balance between supply and demand.
According to the plans, new Bitcoins are issued every 10 minutes. During the first four years of the cryptocurrency's existence, the number of new Bitcoins issued every 10 minutes was 50. Every four years, however, that number is divided by two. Halving is characterized by the day - and the fact - when the number of new Bitcoins issued is divided by two.
During the first halving, on November 28, 2012, the number of new Bitcoin issued every 10 minutes decreased from 50 to 25. In 2016, during the second halving, it dropped from 25 to 12.5, while now with the third halving As of May 12, the number of new Bitcoin issued every 10 minutes will be reduced from 12.5 to 6.25.
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