- Bitcoin halving will lead to scarcity in supply while demand will either increase or stay at the current level of 633,000 BTC.
- Scarce supply and high demand is an ingredient for the next bull run between $20,000 and $50,000.
The anticipation surrounding Bitcoin’s third halving event has started to gain momentum across the market. The Managing Member of Lighting Capital, a hedge fund management fund, Charles Hwang predicts that the event will positively impact Bitcoin price in the range between $20,000 and $50,000.
Hwang says that if Bitcoin demand stays intact at 633,000 before and beyond 2021 and the mining the mining rewards are slashed to 328,500 per year from the prevailing rate of 657,000 per year then “the sudden shift in the supply curve will most likely be the catalyst for the next bitcoin bull run.”
He explained to CoinDesk:
“There have been many people who claim there is no demand for bitcoin. However, the data from LocalBitcoins and dark markets demonstrates people are purchasing bitcoin.”
At the time of writing, Bitcoin is trading at $7,220 amid a bearish trend and shrinking volatility. BTC bulls will have to defend $7,200 support for dear life or risk exploring areas under $7,000. The best deal will be to reclaim the support above $7,500 and focus on trading above $8,000.