By
Godfrey Benjamin
April 19th, 2024
A Bitcoin halvening is a fixed event and will occur after every 210,000 blocks are mined, or confirmed, by the system. StillMark Capital analyst Alyse Killeen thinks that there will be even greater demand for Bitcoin.
The largest cryptocurrency, Bitcoin seems to have something to worry about. This week it was literally swept off by one of its biggest rivals – Litecoin.
Mati Greenspan, senior market analyst at brokerage eToro said:
“If Litecoin is indeed the leader, let’s look out for a Bitcoin breakout this week.”
Even though we cannot say that BTC performed badly, fourth biggest cryptocurrency has risen by more than 300% this year and is up a staggering 43% over the last month. It is presumed that the investors are looking towards a cut to its supply scheduled for August, known as a halvening.
Bitcoin was pretty much flat over the last month but yesterday it also went on surging. At the time of writing its price went up 5.46% to $8,690.
However, the truth is that the Bitcoin price has more than doubled this year and U.S. venture capitalist are praising its progression. Nevertheless, they are warning that the market is heading for a “supply shock” thanks to next year’s closely watched Bitcoin halvening event.
Alyse Killeen, managing partner of StillMark Capital says that what is actually happening is an anticipation of a coming supply shock in 2020. She said:
“In 2020 we’ll have just half the daily supply of Bitcoin that we do now. While we’re looking ahead to this supply shock and halvening event, we’re also seeing greater demand for bitcoin and new on-ramps for more familiar and conventional sources. There’s the anticipation that there will be a broader group of users and consumers who have an appetite for Bitcoin.”
We have to be aware though, that Bitcoin and cryptocurrency markets do not respond to any of the things that usually move traditional currencies, stocks and shares or commodities. Greenspan said:
“As we’re dealing with an emerging asset class, crypto evaluation metrics are still largely being developed. Stocks, bonds, currencies, and commodities all have decades if not centuries of price discovery, so analysts more or less know what to expect.”
He also explained that the crypto market has only begun to mature in the last two years and that what does work well for crypto analysts are simple technical analysis tools like support and resistance points, especially psychological barriers, as well as sentiment, trend, and above all momentum indicators.