One of the most important events for the crypto community is approaching: Bitcoin Halving. Waited for years, it could forever change the way we understand cryptocurrencies. With many of the crypto market analysts waiting for it to bring a significant rise in the price of BTC. Including Adam Back in our Tweet of today:
What will happen to the price of BTC after Halving?
During the last months the debate has intensified within the crypto community, between those who consider that the Halving of Bitcoin will bring an increase in the price of BTC, and those who do not.
As the proximity of this event, and the situation of the crypto market, makes it urgent for traders to understand the effects that Halving will have, in order to invest accordingly.
Thus, following the pattern followed by the Bitcoin Halving so far, most crypto analysts predict that the value of the cryptocurrency will skyrocket. By substantially decreasing the rate of issuance of new BTCs, which will lead to a reduction in the increase in your money supply.
Which, as long as the demand remains unchanged or increases, should lead to an increase in its price.
A more than likely scenario, according to the analyst known as “Plan B” on Twitter. Who comments that to maintain the price it is today, the Bitcoin market must have received a liquidity increase of $ 400 million a day for the last two and a half years.
So by halving the rate of increase in supply, if you keep receiving this amount of money, BTC will skyrocket. A position that Adam Back supports in responding to Plan B:
“There is also some uncertainty “waiting to see what happens to Halving.” And if there is a positive movement, the media will talk about it and create a loop of positive reflexivity. Waiting for the quantitative easing, when Bitcoin’s money supply growth rate halves!“
With this message, the CEO of Blockstream.com would be supporting the prevailing vision within the crypto world. Furthermore adding that an increase in the price, and its coverage by the media, could attract even more capital to the market and strengthen the price of BTC.