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Having started at around $7,000 in January, the Bitcoin price has swung wildly above and below $10,000. With Bitcoin halving around the corner, many in the crypto space expect Bitcoin to keep climbing up the ladder.
When we say Bitcoin halving we usually think of reduction of the miner reward in the Bitcoin network. Well, the thing is – it is soon happening. The third ‘reward era’ will be opened in May this year and we cannot wait for it to happen. Why? Well, usually every time the halving happens – the Bitcoin price rockets to the heaven. This year, analysts estimate that the price of Bitcoin could skyrocket after the halving as never before. Well, to us it means only one thing – beating the December 2017 when the coin managed to reach its record of $19,783.
Be it as it may, some analysts from Optical Art wanted to compare Bitcoin price rise now and the bear market of 2014. They managed to calculate that the current bearish market will last three times longer compared to the one from 2014. Back then, the phase lasted for 13 months between December 2013 and January 2015. So, if it’s to them, we should all wait for the overall bullish reversal of the Bitcoin (BTC) market in the first quarter of 2021.
Mike Novogratz: BTC Price Will Beat $20,000 after Halving
However, we always like to hear what do the experts think. One of the authors favorites Galaxy Digital CEO Mike Novogratz says for example, that Bitcoin could reach and even beat the previously mentioned all-time highs of $20,000 by May’s block reward halving.
Litecoin’s creator Charlie Lee compares Bitcoin with his Litecoin saying the biggest cryptocurrency could actually follow the pattern of an Litecoin, after the halving happens.
Last but not the least is Clem Chambers, CEO of ADVFN, Europe’s leading stocks and shares website who thinks that Bitcoin halving would produce a “very clear bull market” for prices. He added that Bitcoin’s price has been rising at the moment and that it could continue doing so to the halvening and probably even follow the same bullish trend afterwards.
Bitcoin as ‘Digital Gold’
Furthermore, we have people who think of Bitcoin as of ‘digital gold‘. We have all witnessed Bitcoin being compared to gold before. Only in January, the correlation between gold and Bitcoin reached its highest level and this further strengthened the narrative. When we talk about comparing it to this metal, we are talking about the real meaning. Whenever geopolitical situation is turmoiled, gold, real estates, and everything physical is better than cash. So is Bitcoin (and all other altcoins as well). That’s why we were witnessing the huge rise of all cryptos. Whether is fights in Venezuela, Iraq or Syria, whether it is coronavirus – crypto will rise.
Chambers confirmed Bitcoin had a lot of characteristics that made it actually better and even more valuable than the gold.
He said Bitcoin was much easier to carry while traveling when compared to gold, and stressed that Bitcoin was the “flight asset of choice” at the moment.
“Bitcoin is something that you can trade and turn into money very, very quickly and very, very easily. And think about it, if you had to leave America tomorrow with say a half a million dollars, how would you do that? If you didn’t have a bank account abroad, and even if you did, how would you get the money to that bank account in these days of KYC and AML? This is making more of a case for Bitcoin.”
On the other hand, Peter Zimmerman, senior economist at the Bank of England (BoE), recently published a working paper on the price of Bitcoin and other cryptocurrencies, also metioning Bitcoin’s “digital gold” effect.
“When cryptocurrency is more valuable, households become reluctant to spend it on fees. Instead, they prefer to hoard it and endure slower settlement times. I call this a ‘digital gold’ effect: when cryptocurrency is more valuable, agents view it as an asset to store, rather than money to spend.”
At the time of writing Bitcoin was falling 1.92% selling for $9,803.