The problems brought by the coronavirus pandemic has put cryptocurrency issues at the back of traders' minds. Now, because of the upcoming Bitcoin Halving in May, they have gained relevance, putting out the question: will bitcoin rise?
Earlier, in 2012 and 2016, Bitcoin Halving has become the catalyst of growth of BTC prices. It cuts down the supply of BTC, making the asset more scarce, so, if the demand is high, the price is likely to increase. However, experts draw attention to the fact that for a number of cryptocurrencies, halving did not work, and digital assets did not rise in price.
Currently, experts are not sure about the effect of halving on the dynamics of bitcoin. They made cautious predictions in connection with this procedure. According to analysts from Coincident Capital, in anticipation of halving, bitcoin will reach $ 8,000, and will grow a little more in the future. They focused on strengthening the correlation between the cryptocurrency and the stock market, so they believe that the upward trend recorded in the US and EU exchange markets will positively affect BTC.
Other strategists, on the other hand, although confident in the prospects of bitcoin and gold, are skeptical of the further growth of the global stock market. These include Mike Novogratz, CEO of Galaxy Digital, who spoke disapprovingly of the current monetary policy of the US Federal Reserve, believing that the regulator is pouring trillions of dollars into the economy in vain. Novogratz believes that these measures will not help restore the US economy much.
Meanwhile, according to crypto enthusiast Tim Draper, the coronavirus pandemic could be a turning point for BTC. If these measures implemented by the governments were not able to help mitigate the consequences of the pandemic, traditional protective assets (gold) and digital assets (bitcoin) will come to the rescue. According to Draper, in the near future, the advantages of BTC will become obvious, and the market will begin to turn to it again.
Some analysts also believe that incentive measures by the US authorities aimed at supporting the national economy will help boost the cryptocurrency industry. However, its effects will only become noticeable much later.
At the moment, many are betting on a surge in interest in bitcoin after the halving. If this happens, the demand for BTC will increase, and the price of other digital assets will also increase. Thus, some crypto enthusiasts put forward bold hypotheses regarding the prospects of bitcoin. One of them, Tommy Lee, ex-director of BTCC, is sure that halving will first push bitcoin to up to $ 10,000. Then, by the end of this year, it will skyrocket to $ 25,000. Such forecasts look overly self-confident, as the cryptocurrency has not left the range of $ 7,200– $ 7,300. On Friday, April 10, the digital asset fell a little and is now trading between $ 6,940– $ 6,950.
Many economists are confident that bitcoin will not turn into a full-fledged defensive asset and stand on a par with gold and dollar. They consider the cryptocurrency as a crisis decentralized asset created to make payments without the participation of banks and regulatory authorities. In the event of a global economic crisis, it will lose its original functions, retaining only the speculative component.
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