- The performance of Bitcoin has been outstanding in the past few months.
- The incoming halving event will reduce Bitcoin miner reward from 12.5 BTC to 6.5 BTC.
- Past performance shows Bitcoin rising to $1,000 after a year from the first halving event in 2012.
Following the losses recorded between Wednesday and Thursday this week, Bitcoin is hovering slightly above $7,700. The performance of the digital asset has been outstanding in the past few months. However, it cannot be compared to the parabolic moves seen in 2017. The correction from the level $8,000 was as though to confirm the new normal in the market and test if the bulls are still confident in the uptrend.
The price of the largest asset is almost doubled since the beginning of 2019. At the same time, bulls are already getting ready for the next catalyzed move. Consequently, this is likely to be the much-hyped Bitcoin halving event. This event will see Bitcoin mining rewards drop from 12.5 BTC to 6.5 BTC and is coming in the next one year. Various analysts have predicted that Bitcoin will beat the all-time high and will be the turn-around the market has been looking forward to. According to CNBC’s Brian Kelly:
“We are going to hoard bitcoin at this point in time.” He emphasizes “We’re not going to sell it. You generally have a rally a year into [a bitcoin halvening], and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.”
Past performance shows Bitcoin rising to $1,000 after a year from the first halving event in 2012. The second halving in 2016 saw the parabolic rise in 2017 where Bitcoin almost hit $20,000. Traders and investors in the market are looking forward to a repeat of the same after the next halving event with their interest undeterred by the current declines.