Bitcoin in Autumn
Tuesday, September 22nd, 2020 is the first day of fall, and speculation always runs rampant regarding the trajectories of digital currencies and Bitcoin in particular. But if we were to either buy into or buy more Bitcoin in early to mid-May, would we be happy when the leaves turn brown and the air begins to chill?
Incredible! We're having the most beautiful autumn sunrise over Sydney this morning x pic.twitter.com/MgtkMOnfWo— Elsa (@oimydarling) May 6, 2020
Bitcoin is the oldest and most popular cryptocurrency and it's used for everything from investments to purchases of everyday items to turning BTC into cash using online sportsbooks, with a list provided by Sportsbookreview. It's volatile, yes, but also highly liquid and is becoming increasingly mainstream which means more and more companies are accepting it as a routine means of commerce. However, it is not the only digital currency but right now the spotlight is squarely on Bitcoin due to the halvening and what it means for the near to long term future.
Yes, the halvening of Bitcoin on May 12th is the big ta-do and although it sounds a bit chilling, what it really means is that the number of bitcoins (BTC) entering circulation every 10 minutes, also known as block rewards, will drop by half, from 12.5 to 6.25 which also means miners begin receiving 50 percent less BTC for verifying the transactions. It's all about supply and demand and because the amount of BTC is finite then we can speculate as to whether this will have an advantageous or deleterious effect on the Bitcoin market.
Well, let's hear what Bobby Lee, crypto exchange founder and member of the Bitcoin foundation's board of directors, had to say early in April about the future of Bitcoin in the next four to eight months. "The fact that this is the first block halving after Bitcoin became a mainstream investment option for many people further increases Bitcoin's potential upward price movement compared with 2016. The past few weeks show that we will see a significant price jump ahead of the third block halving as mainstream investors turn to bitcoin as a safe haven asset whose supply is decreasing," Lee remarked.
In fact, Lee is so bullish on BTC that he states, "I am convinced bitcoin will exceed its $20,000 peak from late 2017 to reach a new all-time high of $25,000 by the end of 2020."
That is indeed a grand proclamation but Lee has skin in the game and he is naturally inclined to be bullish on all things Bitcoin. However, Lee is not alone as we note Pantera Capital Founder and CEO Dan Morehead is just as optimistic. Morehead stated the following, "Bitcoin has historically bottomed 459 days prior to the halving, climbed leading into it, and then exploded to the upside afterward. The post-halving rallies have averaged 446 days – from the halving to the peak of that bull cycle. In this cycle, the market did in fact trough 514 days before the halving."
But then he followed with this thunderbolt, "If this relationship holds… bitcoin would peak at $115,212 /BTC… I realize that price may sound ludicrous to some today… Just sayin' that there's more than a 50-50 chance bitcoin goes up – and goes up big." Danny Scott, CEO of British-based cryptocurrency exchange CoinCorner, is yet another crypto guru who is wide-eyed with anticipation. Speaking on the May 12th halvening, Scott stated, "Many eyes have been on bitcoin since 2017, with people eagerly awaiting its next big moment. We believe that moment is coming and we can expect to see an explosive year for bitcoin."
Yesterday's poll shows that the #Bitcoin halving is well understood! If you're reading this and are a little unsure though, that's 100% okay. Have a read of our recent article which explains the basics - https://t.co/lB0yYQoLs8 ?#BitcoinHalving2020 https://t.co/mc0j10nPb9— CoinCorner (@CoinCorner) May 5, 2020
And if this halvening bears any resemblance to the last in 2016 then we can expect a short-term drop in price followed by a big rally. Scott elaborated, "After the two previous halvings, we've seen the price reach an all-time high within three to nine months. Looking at the stock-to-flow model, which assumes scarcity drives value through supply and demand, we can hope for the $100,000 region to hit within the next 12 to 18 months."
We've heard the glowing predictions from some of the world's most respected crypto experts but nothing in life is guaranteed and everyone is mortal. As well educated in global digital currency as these men are, we are quite certain that none are equipped with a crystal ball. But if you're thinking of dabbling in BTC then right now might not be a bad time to get in…or so they say!