By
Steve Muchoki
April 25th, 2024
All eyes are on Bitcoin halving scheduled in mid-May 2020 to retrieve the lost glory of Bitcoin. Amid the COVID-19 outbreak, Bitcoin price has corrected over 40% in just the last month.
The COVID-19 pandemic has severely hit not only the traditional markets but also the cryptocurrency markets. The overall cryptocurrency market has corrected nearly 40% in just the last month. The world’s largest cryptocurrency Bitcoin has also corrected 40% during the same period. This market crash has wiped out all of Bitcoin’s early 2020 gains. Just in a month’s time, Bitcoin has corrected ruthlessly from its 2020-high turning 40% positive returns into negative year-to-date returns. All eyes are currently now on the upcoming Bitcoin halving event that is just 51 days from now.
The halving event is expected around May 18, 2020, when the total blocks in the network reach 630,000. The halving will reduce the block rewards from 12.5 BTC to 6.25 BTC.
Several cryptocurrency analysts believe that the upcoming Bitcoin halving could be a savior for Bitcoin investors as well as the overall cryptocurrency market. Bitcoin halving works on the concept of limiting supply. By limiting the miner rewards, there will be less supply of BTC in the network. Thus, as per the popular theory of supply and demand, Bitcoin’s price will increase considering lesser supply and rising demand.
The Bitcoin halving has already been pre-coded in the Bitcoin network and repeats itself every four years. Until Bitcoin reaches its maximum supply of 21 million tokens, the Bitcoin network will undergo halving nearly 32 times. Historical trends suggest that the BTC price increases as the world’s largest cryptocurrency experiences halving.
Will Upcoming Bitcoin Halving Be a Real Game-Changer?
While the historical trends suggest it, the recent Bitcoin movement has shattered the hopes of investors. The Coronavirus pandemic got the global markets to correct heavily. However, the crypto market failed to capitalize this moment and collapsed as well!
Rather than people moving towards Bitcoin, we saw a heavy correction in the market and the BTC price. The good thing is we have seen many institutional players entering the market over the last few months. This could possibly boost the BTC price and eventually the markets from here. The thing is some analysts believe that Bitcoin halving is somewhat a hyped event.
Popular crypto trader and analyst Peter Brandt thinks that halving has little relevance for BTC’s price movement.
Bitcoin halving = #Grossly_over_rated
The daily trading volume of BTC = the REAL supply of BTC
The daily reduction of mined $BTCs (NEW supply) equals approx 2/100th of 1% of REAL supply
Reduction of NEW supply b/c of halving as % of REAL supply = chump change
— Peter Brandt (@PeterLBrandt) March 17, 2020
Similarly, Galaxy Digital CEO Mike Novogratz also thinks that the BTC price movement is all about a confidence game.
$btc was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated. What brings it back to $btc.
— Mike Novogratz (@novogratz) March 13, 2020
However, taking into account the quickly changing situation on the market that we have now, we still should be ready for everything. Today the market tendencies are extremely unpredictable.