Bitcoin halving is near, how will the price be affected?
Bitcoin halving happens every four years and with it comes a volatility in the price of the cryptocurrency. Will the same pattern happen after the forthcoming event? Read on to find out.
Bitcoin supply is limited to 21 million coins, don’t forget 3,790,000 are lost, halving tends to affect the price of the cryptocurrency positively. Crypto enthusiasts have suggested many theories to explain this trend. The most logical, however, is that the law of supply and demand kicks in: Since the network produces fewer Bitcoin, an increased scarcity that develops as a result, makes the existing coins in circulation more expensive.
Up to the first Halving, 10,500,000 had been generated, it rose from $ 11 to $ 1100 in 12 months (10% increase) and again dropped to $ 220.
The second Halving generated up to 15,750,000 BTC’s, the value started at $ 230 and flew up to $ 20,000 in 17 months (9,090% appreciation) and devalued to around $ 4000.
Until the third Halving, 18,375,000 BTC’s will be generated, only 2,625,000 remain after. The third Halving, according to the information we have today, will start at $ 8,000 and previous data showed increases of 10 000%, but I personally not believe in $ 800 000, at best for this cycle it will be in the area of $ 100 000, don’t forget that this is just my opinion, from my perspective and opinion from this Halving up to the maximum amount bitcoin can reach will be in about 20 to 24 months.
The next HALVING will be on 12 May 2020 at 05:49:16 in block 630,000.
Please see bitcoinblockhalf.com
Regardless, the main lesson in the history of bitcoin halving is that there is a clear correlation between bitcoin’s HALVING’s and price volatility thereafter.
But the story for the next ones I think will not be the same anymore?
From the next Halving, + -50% of all Bitcoins generated will be absorbed by two companies: Grayscale for its Bitcoin Trust Fund and Square. This ignores Coinbase’s 30 MILLION users and other exchanges interested in cryptocurrencies.
So I believe the demand will be HIGH, as the supply will practically not exist.
With Crypto Love
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