Bitcoin Price Managed to Rise Above $10K for the First Time Since February but Went Down

UTC by Teuta Franjkovic · 4 min read
Photo: Shutterstock
Photo: Shutterstock

The Crypto Valley experts came to a consensus that this Bitcoin block reward halving would be different from the previous two, regardless of which direction the price of Bitcoin (BTC) goes. However, it seems that, at least for now, Bitcoin price is going up constantly.

The price of Bitcoin continues to rise preparing the cryptocurrency and its investors for the next week’s long-anticipated BTC halving. The event itself is trending as a topic on social media, even as few appear to be considering what may happen after it’s over.

Bitcoin (BTC) jumped on Thursday above $10,000 for the first time since February 24. The leading cryptocurrency rose around 7% in 24 hours to $10,071 as of 23:47 UTC (7:47 pm EDT), with most of those gains made in the last 12 hours. However, at the time of writing the price fell under 10k and was $9,887.

If You Bought Bitcoin in January, Thanks to Rise in Price You Earned 40%

This rise, however, means investors who bought Bitcoin at the beginning of the year are now earning around 40% on their investment. The jump came after a massive crypto market selloff in March, as the economic split from coronavirus outbreak destroyed both traditional and new, alternative financial markets.

Increased analysis around the Bitcoin halving, an event expected May 11 which reduces supply generated by miners and therefore their reward, has made the world’s biggest cryptocurrency main focus for many investors. This includes hedge fund investor Paul Tudor Jones, who announced Thursday his $38 billion Tudor Investment Corp. is buying Bitcoin futures products to gain exposure to the crypto market as a hedge against expected inflation.

Bitcoin Halving 2020 Has the Most Publicity Ever

Matthew Ficke, head of market development for cryptocurrency exchange OKCoin say that Bitcoin’s price rise could be somewhat applied to new investor interest in the middle of the current economic turmoil.

He added:

“This halving has received an incredible amount of publicity, far surpassing previous halvings particularly against the backdrop of the traditional financial markets.”

Ficke also said that many new crypto traders see that, before, Bitcoin’s price would go much higher, and it can rise to those levels again.

He says:

“BTC/USD topped out around $10,400 in October 2019 and February 2020, so it is reasonable to view this as a short-term attraction.”

On the other hand, Darius Sit, partner at Singapore-based trading firm QCP Capital, is not really bullish on a rising post-halving Bitcoin price.

He noted:

“Regarding halving, we hold the view that impact on price might not be material.”

Sit is also pretty much skeptical about the fact that the demand-side buying before the halving has been attributed to “fear of missing out,” or FOMO, as one driver in the crypto market right now and that it cannot last.

Lots of Mining Machines to Become Ineffective

Zach Resnick, partner at crypto investment firm Unbounded Capital believes that a lot of mining machines will probably become ineffective for Bitcoin mining because they won’t be making profits after the reward falls from 12.5 to 6.25 BTC.

He said:

“Bitcoin miner revenue will go down by close to 50% once the block subsidy is cut in half, which means for all but the most professionalized miners BTC mining will become unprofitable overnight absent a significant run-up in the price.”

Sit added that this could mean the selling of Bitcoin could be on the way from smaller miners who cannot hack the halving’s reduction in crypto inflow.

Some of the cryptocurrency winners include Neo (NEO), that at the tie of writing was growing by 6.45%, Monero (XMR) that was up 9.27% and Dogecoin (DOGE) out of the doghouse, rising 2.53%. The lone loser is Lisk (LSK) that fell slightly by 0.05%. All price changes were as of 5:32 am ET Friday.

Crude prices went up by more than 3% on Friday as the travel industry looks to rebound from losses following easing lockdown measures across the globe. West Texas Intermediate (WTI) for June settlement jumped 3.61%, trading for $24.40 per barrel at 3:02 am ET, while Brent for July delivery gained 2.58% to sell for $30.22 per barrel a minute later.

In the United States, the Dow surged 1.57% at 1:49 am ET while the Nasdaq 100 soared 1.43% at the same time. A minute later, the S&P 500 went up by 1.50%.

In Europe, the DAX jumped by 1.17% at the opening bell while CAC 40 kicked off 0.91% higher.

According to Chris Beauchamp, chief market analyst at investment platform IG Equities performing either flat or up this week contradict the imminent danger of a progressively volatile global economy.

“Warnings of terrible economic performance this year have been followed by predictions of a moderate rebound for next year. But as companies around the globe are discovering, it is almost futile to predict what the next few quarters will look like,” said he.

Altcoin News, Bitcoin News, Blockchain News, Cryptocurrency news, Market News
Teuta Franjkovic
Author: Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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