Bitcoin After Halving - What Now?

After a long time of anticipation, Bitcoin halving occurred on Monday May 11th, cutting the number of daily Bitcoins produced from 1800 to 900.

Every four years, the amount of new coins that minors receive as a reward for mining a block of Bitcoins is cut in half. As a result of this third halving in Bitcoin’s history (next one to take place in 2024), bitcoin miners today receive 6.25 bitcoins instead of 12.5 

Bitcoin prices have surged in the past few weeks in view of the upcoming event, but the main point on the agenda of the day now is - will the Bitcoin price continue to increase? Especially questionable, given that in the last 24 hours preceding Bitcoin’s halving, BTC price saw a decrease.

Historically speaking, after both halvings that have taken place in the past, Bitcoin’s price has seen a sizable increase in the 12-18 months that followed. Analysts believe that while this is mainly due to scarcity, other factors also come into play. These include the number of users on the network, the rate of BTC adoption in institutional settings, economic factors that exist outside of the cryptosphere (in our case today: the coronavirus and the government stimulus that followed it). 

Be that as it may, even some major advocates of the BTC-price-rising-after-halving theory are not sure whether it’s going to happen instantly this time around.

"The problem is that we are looking at the actions of a few speculators," says Alex Mashinsky, CEO and founder of Celsius Network - a well-known crypto lending firm.

He argues that the price of Bitcoin could be stuck hovering around $10,000 for a while until the impact of the halving is fully priced into bitcoin. 

While most are confident the bitcoin price will climb eventually, in the short term the bitcoin market is expected to see its share of volatility.

Info Sources:

https://edition.cnn.com/2020/05/12/investing/bitcoin-halving-price/index.html

https://www.financemagnates.com/cryptocurrency/news/the-bitcoin-halving-is-over-whats-next/

https://www.forbes.com/sites/billybambrough/2020/05/11/bitcoin-halving-is-now-when-to-buy-bitcoin/#13124b6c5808

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