Bitcoin halving has been a hot topic in the crypto community this year. Unlike in the past two havings before this one, today’s halving is quite different. After the covid19 outbreak late last year the financial system was hit hard and the cryptocurrency community was not spared. A massive drop in prices just weeks after the pandemic became an international problem sunk the prices to $4000 mark.
Analysts had predicted that the prices would go up by a huge margin considering bitcoin unofficially plays the role of a SafetyNet asset. With the current global economic crisis, ongoing value for currency depleting was inevitable which meant people will be looking to keep the asset value at any cost.
As the halving come close to happening, historically and analytically proved prices would leap up. True to this statement bitcoin less than two weeks ago has swiftly jumped up from 6700 to 9400. This is a representation of about a 40% rise in 10days.
The Previous Halving
Speculations and predictions on what would happen months after the halving is done. Most analysts say the currency has never hit its potential ever after almost hitting the $20,000 mark three years ago.
During the first having, four years after it was created, bitcoin rose from $11 at the time of halving to $1,000 in the just one year.
This, however, was the time bitcoin was starting to gain popularity both in the US and across borders. In terms of growth, this meant bitcoin gained value way over 1,000% in just a year. Though the prices were lower than this in the second halving the prices were still higher than the first halving.
Four years later in 2016, bitcoin had already gained all he popularity and support from the community it needed. BTC went for halving priced at $660 and a year later the history repeated. From 660 bitcoin went ahead to hit all times high of close to $20,00 again, over 1000% gain in one year.
Pantera Capital CEO Dan Morehead believes the prices will skyrocket in the next year to about $534,000. As unrealistic and ridiculous as this may sound the if in anyone would have suggested bitcoin could hit 10,000 leave alone 18000 they would both sounded equally as ridiculous. He said;
“I believe that the Bitcoin halving being executed at the same time that the Federal Reserve (and other central banks around the world) is injecting trillions into the financial system will serve as rocket fuel for Bitcoin.”
Additionally, different other top profile figures in the financial system also had a lot to say and predict as well. This having might be different from the other two, but the pandemic could either work against or towards valuing BTC.