With Bitcoin halving fast approaching, emotions are running high as this event could most likely be a major determinant of the future of Bitcoin on both short and long-term basis.
Bitcoin has been pre-coded to undergo thirty-one halvings in order to continuously decrease its supply until the total supply is in circulation. As a result of the halving, Bitcoin won't go out of supply for a very long time.
In three weeks, the reward for mining a block of Bitcoin would be halved from 12.5 BTC (which is what miners are currently getting) to 6.25 BTC. Due to the reduction in reward, miners will stop selling at a loss thus causing an imbalance between the demand and supply of Bitcoin.
Each time the Bitcoin halving event occurred in the past, the price of Bitcoin surged exponentially after the event. In light of this, crypto investors and traders are expecting a massive bull run in 21 days.
Surprisingly, the highly expected Bitcoin halving is yet to have even the tiniest effect on the price of Bitcoin. Some investors feel that since the halving event is just a few weeks away, we should begin to see a bullish trend. However, the event has not begun to have any effect on Bitcoin's price whatsoever. Bitcoin has not been able to break the $8000 resistance.
The coronavirus pandemic has resulted in low demands of BTC despite the fast approaching Bitcoin halving. Investors have become scared to invest big in crypto.
If the halving event eventually results in a massive bull run, a lot of investors who have been waiting for several years might miss out.
If it doesn't, the recession might force Bitcoin into a massive bear market.
Source: NewsBTC
