Currently, Bitcoin isn’t “hard money.” Its supply is not fixed, and will not be for a very long time. The famous 21 million limit won’t be reached for over a century if it is ever reached at all. eToro analyst Simon Peters believes that Bitcoin price has all chances to reach the level of $120,000 within 18 months after the halving.
The third Bitcoin halving is now in the past and somehow, it seems it hasn’t justified investors’ expectations. Even though many analysts, including the ones from eToro, were talking about Bitcoin price jumping after the halving – that hasn’t really happened, at least not yet. And not just that, just before halving happened, Bitcoin slumped to almost $8K so there were no words about it going over $10,000.
However, it seems that we were right when we were talking about Bitcoin rise slowly every and each time after halving happened. However, never it had happened immediately, but after, 3,4 or even 6 to 10 months. Bitcoin rarely can bring fast revenue but if we take a look, we can notice that it has recovered significantly since the pre-halving crash to $8,100. Still, it is not to the level some investors wanted.
eToro Analyst Explains Reasons for Bitcoin Growth
For example, after the first halving, Bitcoin had approximately eight weeks before a bull-run began. After the second halving, Bitcoin took even longer before the parabolic rally in 2017 commenced.
However, if it’s to believe to eToro’s analyst Simon Peters, halving as an event per se, cannot really push the price forward with the pace somebody would like. We have to understand main laws on demand and supply. It’s one of the reasons Bitcoin is also called ‘digital gold.’ If the supply is harder, if there is less of it, the price is going to rise – one way or another. With the halving, only 6.25 new BTC is created with each new block mined.
Be it as it may, the truth is that this third halving in Bitcoin’s short history had some effect at the Bitcoin ecosystem. The number of Bitcoin miners is widely expected to drop as the economic reward for mining becomes less attractive.
Short and medium-term, some experts say the halvening could have important consequences beyond the currency itself.
Other Cryptocurrenciens to Grow as Well
Kadan Stadelmann, chief technology officer of Komodo, a multichain architecture project in the blockchain space said:
“Onlookers should pay attention because bitcoin has a direct global market influence over most altcoins. If the market demand remains at the same levels, this halving can mean a natural price increase for most cryptocurrencies besides Bitcoin.”
As halvings continue over time, the speed of Bitcoin supply growth will continue to fall until all 21 million are mined; some estimations say the last fractions of Bitcoin will be mined in 2140.
Some analysts are seeing this event as the beginning of the potential bullish run and predict BTC to grow to $100,000 or $12,000 within the next 18 months.
Of course, there is always the possibility that it may fall, but this might happen if somehow another black swan event happened. However, that is not the completely unreal scenario as well if the COVID-19 bursts out again in fall. Then all investable assets would suffer even greater damage than it was the case until now.
At the time of writing, Bitcoin is trading at $9,736 and was falling by 0.04%. The digital asset continues resisting the psychological limit of $10,000. It is of utter importance that, this obstacle is broken in the short term because the longer BTC/USD stays under the same zone, the stronger the bearish grip becomes.
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