One month after the arrival of the expected Bitcoin Halving, a renewed interest has been generated in the commercial interaction of cryptocurrencies. Likewise, Bitcoin has gradually increased until it almost broke the resistance level around US $ 10,000. You’ll make it? What happens in the Bitcoin market this Thursday?
The Post Halving Bitcoin Market: Less Offer Available
As many know, Halving consisted of a sequential and programmed change in the way new Bitcoins are created. This change originates from the controlled decrease of 50% of the amount of Bitcoins that will be obtained by all miners around the world at the time a new block is manufactured. In other words, miners will earn less BTC for each new block generated.
This event does not happen constantly but the creator of the virtual currency, Satoshi Nakamoto designed it to perform every 210,000 coins generated. This arose based on a financial idea that had from the beginning raised: to achieve that Bitcoin not only free itself from the inflationary trend and devaluation of the currency but also, with this small control, constantly increase its value with respect to money trust.
Thanks to the balance generated by the increased difficulty presented by the creation of more BTCs every day, the community of investors and traders is constantly waiting for new upward trends. Then, with this they seek to generate profits through techniques such as the “holding” of the cryptocurrency, and the sales of their Bitcoins in the best spikes.
The computing power granted by all the machines worldwide that operate to contribute to the cryptocurrency platform has also changed. Now miners must be more efficient in order to cover costs. Those users, whenever a new Halving originates, will receive half the rewards for each block created compared to the previous time.
Whether this is a desired factor or not, it has and will have gradual effects on Bitcoin’s performance.
Side market present right now
To go into context briefly, a side market consists of a certain state within a specific market where fluctuations partially stagnate. That is to say, specifically, these do not present any marked upward or downward trend, but rather remains in constant lateral movement, speaking from a graphic point of view. All this happens without resulting in the appearance of clear changes of course, either up or down.
Currently, referring to the fluctuation of the price of Bitcoin we can see in the chart provided by the CoinDesk team, how a slight change in the trend has manifested itself.
Based on the observation of the balance of the peaks generated by the interaction of buyers and sellers, we will see a lateral market in full development.
Likewise, it is possible to denote a great fall that occurred recently, but this is not a determining factor that tells us that the market is acquiring a downtrend. At any time, within a side market, these peaks can easily get back on track and return to steady, balanced fluctuation.
With this, in addition, the risks appear, since trying to invest funds during this event does not guarantee the return of any profit.
Expectations around the monetary policy of countries like the United States
Finally, now that the US Federal Reserve. USA Speaking of a possible V-shaped recovery, it is unclear whether Bitcoin will become a store of value asset or begin to follow the path of stocks.
The latter is relevant if we consider that after Halving a correlation between Bitcoin and stocks can begin to strengthen. Especially as there is a relatively greater overall share of institutions in the BTC and cryptocurrency market. This seems to make cryptocurrencies ironically more sensitive to global factors.