The question of whether Bitcoin price goes up after halving continues to keep our minds busy. Finally, there is little time left for the 2020 Bitcoin block reward halfway.
According to BitcoinBlockHalf.com, in approximately 16 days, the number of tokens issued per block (average) every 10 minutes will drop from 12.5 to 6.25, resulting in a 50% inflation cut.
Yes, the monetary effects of each Bitcoin split are known in advance. Many traders, however, theorized that halving effectiveness affects the value of cryptocurrencies. There are arguments for both bullish and bearish sides. Therefore, the answers given to the question of whether the price of Bitumen increases will be different.
Will Bitcoin price go up after halving?
According to PlanB, a Quantitative quantitative analyst on whether bitcoin price will go up, halving will provide a steady price rise for the cryptocurrency.
After the halving, Bitcoin price will reach new heights, rising above the all-time high of $ 20,000, set in 2020.
In March 2019, PlanB released the following model, which demonstrates that the shortage of Bitcoin (measured by the reverse of inflation, also called the stock / flow rate) affects the scheme of the network.
The upcoming halving will bring Bitcoin's stock-to-flow ratio closer to that of gold and will give the network a fair value between $ 1 trillion and $ 2 trillion. This means, according to PlanB's analysis, the approach to whether the price of Bitcoin rises after halving corresponds to the value of the cryptocurrency price between $ 50,000 and $ 100,000.
Yes, the common expression is that halving marks an upward trend for the rest of the Bitcoin and crypto market.
However, some analysts have begun to make different interpretations, claiming that the halfway may actually result in another price collapse and that narratives about “miner capitulations” have emerged once again.
Mining facilities can be closed
Mao Shixing, co-founder of F2Pool, told crypto data site LongHash:
If the price of Bitcoin is currently in the range of $ 6,000 to $ 7,000, more Bitcoin Mining facilities will inevitably be closed after halving. The price collapse on March 12 has already caused the closure of several mining facilities.
According to analyst Cole Garner, miners' becoming unprofitable is bad for Bitcoin price after halving because it will force miners to be unprofitable. However, they will be willing to continue their operations by selling Bitcoin assets to finance their operational expenses.
If Mao's disclosures come true, halving will speed up this process and potentially cause a drop in crypto markets.
