Will The Upcoming May 2020 Bitcoin Halving Boost BTC Price? Crypto Analysts On Twitter Are Torn
According to 99bitcoins, bitcoin goes through a halving as a reward to bitcoin miners adding blocks to the blockchain. Not only that, but halving is meant to also keep bitcoin inflation steady. The next halving is expected to occur in 2020.
There is a great deal of speculation as to how the next halving is going to impact bitcoin’s price. Given that there is so much speculation, it is safe to say that no one really knows. But, those who follow Bitcoin, its progress, and halving may want to check out what speculators have to say.
Tuur Demeester, a bitcoin investor and analyst, shared on twitter,
For BTC to retain its current price at $8,000 until the May 2020 halving, we'd arguably need to see net positive demand of $2.88B before then. That's what's required to buy up all newly minted BTC at $8k in next 200 days.
— Tuur Demeester (@TuurDemeester) October 23, 2019
Jihan Wu, the co-founder and former CEO of Bitmain is “pessimistic” according to a Coindesk report. Wu suggested that the former two uptrends may simply be phases of catching up with the bubble and bust cycle. He also pointed to litecoin’s halving in August. The halving did not lead to a price increase, but a decrease.
A trader, who goes by the pseudonym Plan B applied a stock-to-flow ratio to develop a model that retroactively predicts Bitcoin’s past price movements in a way that appears to be quite accurate. According a Yahoo Finance! report, the model predicts that bitcoin’s price will reach $60,000 after the next halving. However, the report also shares that there are those who criticize the model.
At this point, and as stated above, no one really knows what will happen. However, it certainly will be interesting to see whose predictions end up closest to the truth.