Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
It is said that Bitcoin (BTC) price may move higher thanks to the upcoming Bitcoin halving event which is expected to happen in 34 days.
Bitcoin (BTC) price is set to rise exponentially as the halving event is coming soon. This is the opinion of many analysts within the crypto space. But many Bitcoin holders think that Bitcoin price may not go up soon. At the time of writing, BTC is trading at $7,293 (-0.22% within 24 hours).
A recent Genesis Mining report has indicated that only about 50% of Bitcoin holders and users believe that the price will increase. This is coming at a time when many within the crypto space are deeply concerned about the centralization of mining activities by the large mining companies.
Bitcoin (BTC) Price Could Rise within the Next 34 days before Halving
It is estimated that the Bitcoin (BTC) halving is going to occur in 34 days. The halving events cut in half the reward made available to miners for block transaction confirmation. Previous halvings have been always followed by exponential increases in Bitcoin (BTC) price.
Many indicators are pointing to the same trend as well. Some cryptocurrency analysts believe that the markets are set for a bull run. Popular Bitcoin analyst Bitcoin Jack in a tweet indicated that a bull run is in the offing.
This should now be ready, in terms of price and time balance analysis, to start its ascend
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) March 17, 2020
He compared data from the last bull run range from 2013 to the first few months of 2018. The patterns of the moving averages and the Fibonacci sequences of the present market closely resemble those of the period.
Bitcoin Jack also thinks that if there is a consistency in this resemblance, then a repeat of that scenario is possible. It may not be the exponential jump that most people expect. It will most likely be a steady price increase which may continue into next year as well.
This price increase will bring new surprises to the crypto space. Many of the miners that are currently in operation will drop out of the game. This is because a price drop is also expected just before halving. Previous halvings have faced a similar situation.
Miners Will Face Higher Charge for Transaction Confirmation
Those miners who don’t have the low-cost kind of operations to withstand market shocks will try and merge into pools. Mining pools at this time have strict criteria on the kind of members that they want.
As such, the ones that don’t meet the criteria end up leaving mining. as a result of fewer Bitcoins available for rewards. As a result of this drop in supply, higher charges will be made by the miners for block confirmation.
This is the precursor to the series of events that will lead to Bitcoin (BTC) prices going up. The second causal event of this trend is also the fact that Bitcoins are getting fewer. There were only 21 million Bitcoins available for mining.
With the decline in the number of bitcoins mined, there is upward pressure in the markets for prices to keep going up.
One decade after, Bitcoin is still the king of the hill with a dominance of about 64%. This means then that two words represent what needs to be done for the mass adoption of cryptocurrencies: education and engagement.