Hype Regarding “Bitcoin Halving” Continues to Increase Even as Currency’s Market Woes Persist
Over the course of the past 24 hours, the altcoin market at large has continued to see red— with the price of premier assets such as Bitcoin, Ethereum establishing new annual lows. However, despite all this, it is worth noting that the hype regarding the impending shift of BTC’s issuance rate has remained at an all-time high.
On the matter, co-Founder of Rythm Technologies ‘Alec Ziupsnys’ was quoted as saying that the positive sentiment regarding Bitcoin’s supply schedule
“single-handedly makes the premier alt-asset different from all of today’s fiat issued currencies”.
Via a tweet released earlier today, Ziupsyns went on record to say that when the next “halvening” takes place (an even that will occur in approximately 482 days), the 1,800 BTC that are currently minted on a daily basis will reduce by 50% (to around 900 tokens a day). As a result of this, Bitcoin will be faced with an inflation rate of 1.8% — which is projected to then keep on decreasing in a steady manner with each passing year.
Lastly, it is also worth noting that the next halving event will see BTC’s inflationary rate go below the annual inflationary quotient of the Central Bank of America (which is currently pegged at the 2% mark).
Is BTC Primed For A Market Surge?
Even though it should be made explicitly clear that ‘halving’ is not a bullish market catalyst, it cannot be denied that a ‘hype cycle’ has started to engulf this industry at large. In this regard, a famous crypto analyst by the name of Dennis Parker recently commented that there were currently
“less than 70,000 ten-minute blocks left until the next halvening”.
Not only that, but a lot of traders are also of the opinion that Bitcoin’s issuance reduction could potentially have a nice/positive effect on the value of the premier altcoin. For example, recently pseudonymous crypto expert ‘Moon Overlord’ went on record to state that the fact that
“BTC barely moved off VanEck, CBOE, and SolidX’s ETF withdrawal was a clear sign that a bottom for the token had started to fester.”
He then went on to add
“Bitcoin has traditionally started pumping around one year on average before it’s halving date.”
Overlord’s sentiment is shared by a number of other established analysts such as Trader Jones who believes that the current Relative Strength Index (RSI) readings and chart structures being exhibited by BTC are quite similar to those that were observed near the end of the 2015 bear market (which was a year prior to the previous halving)
2019's RSI and Chart look very similar to the 2015 chart.
Black lines are Bitcoin Halving dates.
Maybe the bottom is in. pic.twitter.com/AhoMByIW3M
— Trader Jones (@Jones__Trader) January 26, 2019
In rounding out this article, it is worth mentioning that entrepreneur Alex Melen too is of the opinion that the last time “BTC bottomed” was when the premier asset fell under its four-day 50 & 200 MA— something that is happening to the cryptocoin again at the moment.