The crypto market is seeing a ‘whale profit taking’ in the past 24 hours, driving the price of all major crypto currencies down. The move comes two days before the long anticipated halving. Many assumed that this year’s halving would be a dud, certainly when the price of Bitcoin dived towards the $3,500 level in mid March. But lo and behold, it’s touched $10,000 again this week, just as a Forbes journalist predicted a week ago.
Bitcoin looks stronger than ever going into the halving this time round, so many wonder why that is. Here are the top 5 reasons why Bitcoin is so well positioned before the halving.
First, there is the price level. Bitcoin opened around $7,000 this year, surged to $ 10,000 in February, plummeted to $3,500 in March due to the Corona crash, and quickly scrambled back up, only to touch $10,000 again this last week.
This makes many suspect that the coin can go much higher this year. Some are even reminiscent of a 2017 bull run to $20,000.
Secondly, there is the increased competition between the companies that mine Bitcoin.
Thanks to the Corona crisis, many of the unprofitable miners have stopped and if you look at where the miners are now, the center of gravity is still in China (due to low electricity prices), but the US, South American and European presence is increasing.
Third, there is the worldwide reputation that is constantly growing. In the previous halving four years ago, Bitcoin was still an odd man out, now there is hardly anyone worldwide who does not know what Bitcoin is.
This year the coin was mentioned in several well-known television programs. There was first The Simpsons and this week the latest episode of Billions.
Fourth, more and more traditional investors are also using the currency as a hedge against inflation. If magazines like Fortune and Forbes devote articles to crypto on a daily basis, you realize that Wall Street is also interested.
For example, there was a message on Bloomberg this week that Paul Tudor Jones, a well-known hedge fund investor, has now also started using Bitcoin. All positive signals.
The acquisition of CoinMarketCap by Binance that year was also a very bullish signal of global adoption being readied.
Finally, there is the history that is important to many Bitcoin buyers and owners. During the previous halving in 2016, a good bull run started which culminated in the run of late 2017 when suddenly the whole world heard about Bitcoin, Satoshi Nakamoto and crypto.