Bitcoin Halving is Just 68 Days Away while BTC Price Stuck at $8800

On Mar 4, 2020 at 2:09 pm UTC by Jeff Fawkes · 4 min read
Bitcoin Halving is Just 68 Days Away while BTC Price Stuck at $8800
Photo: Depositphotos

Bitcoin halving is one of the major reasons for volatility increase before May 2020. Miners increased their effors in mining Bitcoin. But during a coronavirus attack, it may be difficult to resist the temptation and sell coins to buy masks and disinfectors.

After Bitcoin price reached $10,000 last week, it hasn’t been moving back and traders are wondering what happens next. Next Bitcoin halving and coronavirus fears force worldwide crypto communities to protect their family from both the threat and economic collapse. Some analysts have stated that a deep correction is on the way to the cryptocurrency market. The correction is not coming, and the drama heats.

From the other side, people are claiming that Bitcoin is accumulating power to start a bullish rally. With a possible 100% growth, Bitcoin could even reach $20,000 after the halving. However, this might be a long process, taking months, according to many positive predictions. History shows that it took three years for Bitcoin to pull off from the 2014-2015 bear trend.

Some Experts Claim $18,000 Immediately at Next Bitcoin Halving

Polar Hunt has issued an analysis claiming that such a Bitcoin price is entirely possible. After studying the previous Bitcoin price cycles, they noticed similarities and cycles. Per the document, Bitcoin can easily gain up to 100% in value. Which is a significant increase, driving the price to a barrier of $20,000 and above.

The interesting part is that the study suggests that the price increase will happen exactly when Bitcoin halving occurs. This is a risky prediction because it will happen in around 68 days. Mike Novogratz, Galaxy Digital CEO, and notable crypto trader, said that he expects Bitcoin to cost $20,000 ‘literally by the halving’.

Previously, this notable investor was saying that cryptocurrencies will receive much more steam after regulators roll out strict laws. As of now, many tech aspects of blockchain remain in the unclear juridical zone. Per the TradingView specialist, ‘Financial Survivalism’ Bitcoin will hit $20,000 by July 1, 2020. He has some graphs and thoughts to back his prediction.

Bitcoin’s Hash Rate Hits All-Time High, Market Full of Miners

Miners understand that soon they will have to put more money into mining equipment to receive more profits. Ahead of the Bitcoin halving, the whole community seems like enabling even the oldest ASICs. Bitcoin’s hash rate jumps even during coronavirus attack, which means that the planet is not that dependent on China and Bitmain as conspiracy theorists want us to think.

The network is currently making 130-136 hashes per second. Despite the market is flowing in an unclear direction, miners seem to flow in the game. During the past year, Bitcoin’s hash rate increased threefold. Jonathan Hamel of the Academy of Bitcoin claims that this is not a big surprise:

“Well-established miners are ramping up investments. I’m aware of a few major projects backed by traditional investment and private equity funds.”

Per the researcher, the trend has received traction at the beginning of 2020. The mainstream press started to push the bullish narrative later. After the halving, Bitcoin miners will receive 6,25 BTC instead of 12,5 BTC, which may indicate that weak miners will leave the game in a few months:

“With the halving, we’re gonna have a clear picture of who are the efficient and profitable miners as the least performant ones can’t mine at loss for an extended period”

Hamel further points out that the networks give less and less money, including in fees. This is one of the keys to the price increase. Also, miners will have to put more cash to pay for electricity. Only the ones who have moved their rigs to countries like Mexico could continue the competition. Where else do they have ultra-cheap electricity?

Miners Worldwide Enable New Facilities

Worth noting that Peter Thiel, venture capitalist, and crypto businessman have backed a massive mining facility in Texas. In the same state, Whinstone U.S. Northern Data want to open 100-acre warehouses.

Bitcoin mining achieves significant decentralization. Mining efforts in countries with a cold climate or cheap electricity seem breathtaking. So far, Georgia, Iceland, Mexico, Canada, Russia, Great Britain have been participating in mining. Just look at the geography of Bitcoin’s visible network nodes. The bold clusters are the concentrations of miner operations.

Notably, the Indian Supreme Court has recently destroyed the Central Bank’s ban on crypto, which was in action since 2018. This has no reflection on crypto prices. Bitcoin is still at the $8,800 level, Ethereum seems like going to $220 level. 

Bitcoin, Blockchain, Cryptocurrency news, News
Jeff Fawkes
Author: Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

Share this article

Related Articles