Bitcoin Halving: 6 Months to Go, What Does the Market Think BTC Price is Heading?
As the price of bitcoin climbs back above $9,000 BTC/USD, interestingly, Bitcoin reward halving is just about 6 months away now, 186 days to be exact. After this halving 61 such Bitcoin halving events are more to come.
195 days until the next Bitcoin halving.
Less than 3 million Bitcoin left to mine.
Hash rate keeps hitting all-time highs.
We are watching the strongest computer network in the world continue to get stronger and stronger.
— Pomp 🌪 (@APompliano) November 1, 2019
Being a deflationary digital asset, this halving would see Bitcoin rate declining from 3.71% per annum to 1.80% which Dr. Mervyn G. Maistry, board member of Cyberian Mine said will bring its inflation below that of the dollar and euro. So, for the “first time,” he said Bitcoin will have some inflationary and economic advantages over the fiat currency.
Massive Upward Surge, Decline or No Big Impact?
This halving will be third such halving, the previous two ones occurred on Nov. 28, 2012, and July 9, 2016, when the price of BTC was $12.30 and $650 respectively. What about this time?
When the halvening comes, the profitability of the miners go down and a lot of miners get squeezed out. As such, the difficulty decreases and the price increases.
Sean Walsh, CEO and chairman of the board, the Hyperblock.Inc shared recently that both six months before and after the bitcoin halving, BTC recorded “massive upward surge.”
Many commentators believe BTC could hit its all-time high (ATH) at $20,000 around that time only. Though the event would be “scary” for a miner as their revenue stream is going to be cut in half, Wash said, “the exchange rate will more than compensate for the reduction in our Bitcoin denominator revenues.”
From the 3 data points we've available so far in the 11 years of Bitcoin history, it appears that:
Bitcoin Price-to-S2F deviation converges toward S2F equilibrium until the next halving induced supply shock disrupts it. pic.twitter.com/1teHemFYih
— CL (@CL207) November 6, 2019
However, Nick Damico, CTO of Bitpatagonin is “not very optimistic” in the short term and expecting the price to go down. While at the same time, Hugh Tian, Co-founder of Antpool isn’t concerned as he is “not expecting an overly big impact.” Fluctuations can occur both before and after having but not “too big.”
Bitcoin Going to be “Super” Valuable over time
Popular analyst PlanB who is known for using stock to flow approach to determine Bitcoin value shared last month that “we are entering a new phase” and the next 6-12 months are something to be “excited” about.
As such the next 6 to 12 months are going to be really important for the cryptocurrency market.
Recently, Vinny Lingham also talked about how “We're heading for a very dangerous nine months,” as the Bitcoin bubble is “inevitable.”
According to Bobby Lee, board member of BTC Foundation, Bitcoin would first shoot past $500,000 and then $1 million due to this event. This is because Lee says halvings make Bitcoin more valuable with its inflation keep on declining, making it more scarce than gold.
#Gold is at about $8 trillion today, which is 50x the worth of #Bitcoin.
I predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500,000.
And with all of the money printing that’s happening globally, $BTC will actually very likely be over $1 million! https://t.co/hbqGze38k5
— Bobby Lee – Ballet: Simple & Elegant Wallet (@bobbyclee) November 10, 2019
But when Bitcoin tanks the usual 80% from such an inflated market cap, that Lingham said “would wipe out “$4 trillion dollar in global GDP overnight.”
Such a wipeout’s knock-on effects he said would be “immeasurable” as there are chances of global depression that could drive governments to ban the cryptocurrency.
Live Bitcoin (BTC) Price:
1 BTC/USD =$60,381.4215 change ~ 3.34%
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