Possible BTC Price drop after Bitcoin halving

Possible BTC Price drop after Bitcoin halving

By Shehara | Cryptonology | 5 May 2020


It is almost a week before the most anticipated event in the crypto market. Bitcoin happens every four years last two having happened on the 29th of November, 2012 and the other happened on the 10th of July, 2016.  This makes miners a great opportunity by producing a  certain amount of bitcoins whenever a block is produced. This is usually produced for every ten minutes in the having event. Respectively block height of the last two halvings was 210,000 in 2012 and it is  420,000. in 2016. As far as present conditions are concerned, 12.5 coins per lock but it will decrease to 6.25 after the halving. 

From the first having to second halving the price of BTC has significantly increased by 50 times which was reported to be approximately 800$ in 2016. After the first halving, BTC price was reported to be is 200$ and 1000$ in two peaks. However. after the second halving, BTC price had been continuing to rising and gaining 20000$ price as a recorded price. in 2018. The significant thing is, it took only two years to gain recorded price after the halving. But after then, it continued to drop. Moreover, in early 2019 it was 3200$ by decreasing  6.25 times. Then. it was recorded das 10000$ during the mid of 2019 after recovering the half portion of its loss to the greater extend.

 

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 Prices rose only 6% from $12.75 to $13.50 in the two weeks after halving and remained sidelined in the following five weeks. 

Now the BTC price is around $9K before the halving event. But we have some other crucial thing to deal with today. The COVID 19 outbreak has struck all of asudden and comical and most of us are heading to the economic crisis as well. It is a bit of confusion all around the crypto world how Satoshi Nakamoto’s economic system will tackle this situation while holding Bitcoin halving. Before the event, Bitcoin is struggling to pass $9K.

Mr Chu Co founder of hong kong blockchain system Kenetic Capital said that institutional interest and engagement in bitcoin seemed to be at the peak level as we are getting closer to halving event. However, although experts still to believe that it will go around five figures after the halving, it is not possible at this moment since these economic conditions are somewhat critical now.

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According to the report of Coindesk, Before the 1st having, BTC price continued to rise where it was in the second halving, there were several drops and peaks. As a whole, although these two paths were quite different, after the halvings, the price was ultimately up. But this time there is a peak of BTC price which is currently around $9K. Hence, there is a great possibility that price may drop after the halving. Apart from that, Fiat currencies are also affected by the COVID 19 which will have a negative impact on the crypto markets well.

If the risk aversion worsens, bitcoin may extend the drop toward the 200-day average at $8,000.

Whatsoever, although there may be a temporary pullback of BTC price, There is a possibility of gaining a dominant price but it needs more considerable time as well. In history, After the halvings, there has never been a significant price drop, every time it was able to recover the loss as much as possible.

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Cryptonology
Cryptonology

Hi, I'm Kavi Shehara, interesting in writing articles on crypto assets. You can keep updated with my articles all the time.

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