Since the beginning of the year 2020, Bitcoin has lived one of its biggest bullish rallies of recent years. It was driven by two main factors. First, the unfortunate expansion of the Coronavirus worldwide, which led investors to shelter their capital in BTC. Second, the proximity of the next Bitcoin Halving in the month of May. However, it seems that today the former is outpacing the latter as the engine of the price of the cryptocurrency.
The factors behind the rally
Whenever there is a variation in the price of Bitcoin, the first logical reaction for the entire community is to try to understand why it has happened. It is that, if we do not understand the reasons behind any movement in the markets, we will most likely make decisions with important blind spots, which will lead us to suffer losses in our investment.
Therefore, as soon as the current Bitcoin bullish rally began, all the analysts in the community crypto turned to explain what was happening. Rising two factors, Halving and Coronavirus, as the main responsible behind the increase in the price of the cryptocurrency.
The first of these factors would be the proximity of the next BTC Halving in the month of May. This event will reduce the reward received by Bitcoin Blockchain miners for each block mined in half. At the same time it will make the mining of the coin more difficult. Immediately increasing the shortage of the currency, and therefore, decreasing the offer and increasing the price.
For its part, the second factor behind the rally would be the unfortunate advance of the Coronavirus worldwide. Essentially due to the political, economic and social uncertainty generated by the virus worldwide. And that, due to the condition of Bitcoin as an active reserve of value, leads the world’s great investors to position their capitals in the crypto market. Looking for shelter against a possible fall in the world economy.
Now, between these two factors, during the first month and a half, market crypto analysts considered that the one with the greatest weight was Halving. Because the effect of the latter caused the price of Bitcoin in 2017, leading to cryptocurrency at prices close to $ 20,000 USD. It is enough incentive for traders to prefer to accumulate BTC now, waiting for the rise of May.
However, with the passage of time and the exacerbation of the global health crisis, now the crypto community would consider the center of Bitcoin market events to be the Coronavirus, and not the May Halving. A trend that is demonstrated in Google searches, usually a good reflection of what the markets are thinking.
Thus, if we look at the searches made on Google with the keywords “Bitcoin Halving” and “Bitcoin Coronavirus”. We can note that at the beginning of the year Halving was dominant in the network, until Coronavirus accelerated its worldwide expansion, and with it the interest generated by its relationship with BTC.
This would show the interest of the crypto community in the Coronavirus as a driver for the Bitcoin market. As well as the debate that has been born of this bullish rally about the quality of BTC as an asset reserve of value. What has dwarfed, to some extent, Halving as a factor in the growth in the price of the cryptoactive. Making this our Data of the Day today here in CriptoTendencia.