Before Bitcoin’s third halving early next week, the markets have come together to assess the crucial $10K zone.
While halving has historically been seen as a catalyst for growth in the markets, Bitcoin goes into halving amidst a global climate of extreme economic uncertainty, and as a result we have a nearly 150% increase in less than two months.
Cointelegraph spoke with several of the top cryptanalysts to get their views on the current market situation. Their responses range from cautious to optimistic.
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Some analysts take a cautious view
„This Bitcoin halving will certainly be different from the previous one,“ said Ontology co-founder Andy Ji, adding, „Bitcoin and the crypto industry now face new challenges as current trends such as Bitcoin Rush Review – Bitcoin Revolution Review – Bitcoin Billionaire Review – Bitcoin Evolution Review – Bitcoin Code Review and COVID-19 impact the world.
Ji states that we can be „cautiously optimistic about Bitcoin’s halving of the price,“ arguing that since „halving is known everywhere, it is less likely to increase the price as much as it did last time.
NEM Ventures CEO Nicholas Pelecanos said that while halving „has historically marked the beginning of Bitcoin’s biggest bull runs,“ previous studies show that the event usually triggers „a period of immediate selling.
„The 2012 halving was followed by a 10% immediate sale, and the 2016 sale saw a 38% drop. Both halvings were followed by an approximate 50-day drop in hashrate,“ he said.
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Quantitative easing benefits the BTC
But other analysts see a bright future ahead. Mati Greenspan, the founder of Quantum Economics, emphasized the appeal of the Bitcoin shortage amidst the quantitative easing (QE) measures being implemented in the United States:
„All the attention has been on BTC lately as the halving reminds us of the unique quality of this asset and the digital shortage, especially during this time of massive relaxation in traditional markets.
IG’s senior analyst, Joshua Mahoney, also highlighted the positive impact this event can have on the crypto asset market.
„The reality is very different and the desperation to keep the markets up means that we are likely to see more events like this. That’s good for Bitcoin and other non-trust assets like gold,“ he said.
„From a broader perspective, the large growth in central bank easing and government debt highlights why many feel the need to store their profits in alternative assets to avoid the apparent depreciation that could be at play,“ Mahoney said.
„As things stand, we are heading for a 182% increase in BTC since the December 2018 decline, and the increase we are currently seeing projects a rise in the months following this third halving.
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Pascal Gauthier, CEO of Ledger, highlighted the increased institutional interest surrounding BTC.
„While we don’t know how the next halving will affect Bitcoin’s price, we do know that investments are reaching the institutional market and more people than ever are investing in Bitcoin,“ said Gauthier
„The crypto market continues to rise, in a trend very similar to what we saw in 2016,“ he added.