Bitcoin has just completed its third halving in history, and is still positive for the year. Many wonder what is to be expected for the future and what the price exact expectation is. At the time of writing, Bitcoin traded at $ 8,650 after briefly tapping $ 10,000 last week.
The circumstances are of course completely different then in 2016, even if the indications are quite good. After all, last time the halving happened, cutting the number of blocks in half and reducing the rewards for miners, there was no global pandemic that could disrupt the global economy. This time there is.
Furthermore, Bitcoin had a bizarre selloff this weekend, a kind of flash crash that according to crypto critics such as Peter Schiff and Dr. Doom Nouriel Roubini was actually a pump and dump scam. So, many are ignorant of what the most famous crypto will do after the event many are waiting for. Is Bitcoin going higher, or is there a profit taking?
Katie Stockton of Fairfield Strategies said: ‘We don’t have a big sample size of past halvings, but they generally have a positive impact on sentiment after a short-term period of volatility. I think the anticipation of the halving has contributed to the outperformance by bitcoin over the past few weeks, and that a breakout greater than $10,055 is likely to unfold after a few weeks of choppiness triggered by today’s gap.’
Mike Novogratz, the Bitcoin bull and CEO of Digital Galaxy Holdings, appeared on CNBC and stated that he ‘is seeing interest from high net worth individuals and funds. Bitcoin should take out $10,000, on its way to $20,000 by the end of the year given the favorable macro drop of quantitative easing.’
End of cash
However, there have also been positive signals for digital currencies since the outbreak of the Corona virus. For example, China recently launched its own “digital yuan” and more and more hedge funds are investing in Bitcoin as a form of protection against inflation. Many were also increasingly wondering if this would mean the end of cash.