Bitcoin (BTC) and cryptocurrencies have seen a massive rise in the past 10 days. After hitting the $ 7,000 for weeks, it took BTC just hours to get past the $ 10,000 again. What are the Bitcoin experts saying about the rise of the crypto market?
Bitcoin experts weigh in on crypto market rise
As the world grapples with the sharp economic downturn brought on by the current global Coronavirus pandemic, the value of Bitcoin has been at odds with mainstream stock markets. What is known as the “Decoupling”.
Unsurprisingly, some experts from the Bitcoin ecosystem have been somewhat skeptical as to whether the positive trends exhibited in this rally will continue after the impending Halving.
Since the March lows, Bitcoin has gained more than 100%, outperforming most other cryptocurrencies. With a profit of over $ 100 billion in the same time period, in your market capitalization.
However, other Bitcoin experts think this may be the start of a massive recovery that will lead BTC and other cryptocurrencies to regain, and surpass, annual highs.
This expert Bitcoin trader has commented on a possible rise of the crypto market in a series of letters and videos to his subscribers on their social networks.
The letter from last April 29, provided a bullish stance thanks to Halving.
“This event will see a scheduled decrease in Bitcoin’s daily supply from 1,800 per day to just 900 Bitcoin per day. This disruption of supply has historically led to an increase in the prices of materials over the next 18-24 months. ”
Crypto Bitcoin expert and Pantera Capital CEO Dan Morehead provided an equally optimistic prediction in a letter to investors in late April.
This letter included an increase in crypto market prices thanks to the following Halving.
“If history were to repeat itself and follow the trend of the previous 2 Halving. Bitcoin would peak in August 2021 – at $ 533,431. I think there is more than a 50-50 chance that BTC will go up and up big. ”
Crypto Bitcoin expert Christopher Bendiksen presented a report giving his opinion on the possible rise of the crypto market.
The report presented five different scenarios that could take place during and after Halving reduction.
According to the report, it is extremely unlikely that a death spiral will occur on the BTC Blockchain. While the chances of no real effect on Bitcoin’s value also seem unlikely.
Bendiksen suggests that 2 of the most negative scenarios are quite likely. The first of them talks about the possibility that traders may be inclined to sell crypto thanks to hype.
Second, it talks about the impact miners will suffer. Which can be pressured to sell their Bitcoin Hodls. Which will reduce the price of the cryptocurrency.
The combination of a 50% reduction in new available supply with a reduction in the proportion of current supply for sale in the crypto market could drastically reduce the persistent selling pressure caused by miners, and therefore a rise in prices.
“These dynamics, combined with errors in the macroeconomic policies taken by world governments, and the increasing offers in Bitcoin investment products. They could cause a perfect storm for the bitcoin price in the medium and long term. ”
Halving as the main trigger for Bitcoin’s rise
Whatever the bitcoin expert’s point of view on the short-term future of the crypto market. BTC’s Halving is the main trigger for them.
The Halving event is highly anticipated as the Bitcoin reward for validating a block will be cut in half. Since the start of the first cryptocurrency of all in 2009, there have been two such events.
Both of the previous Halving have greatly increased prices, the first of which brought the BTC price from $ 11 to $ 1,000 in 2012 within a year. In the year that preceded the second, the price of Bitcoin steadily increased until 2017.