Just as it was being anticipated, Bitcoin’s block reward halving of 2020 took place on 11th May, at around 4 pm EST, when block 630,000 was mined. A halving refers to an event that halves the reward received by cryptocurrency miners for processing transactions or mining blocks. The halving of Bitcoin blocks takes place once every four years approximately. Since its 2009 inception, it is the third Bitcoin halving this year.
You might already be aware of how the values of foreign currencies are affected by the monetary policy decisions taken by central banks. Analysts are expecting something similar regarding the Bitcoin halving as well; many think that the value of Bitcoin is going to be affected. This is what some of the top analysts and investors in the sector think:
An Immediate Rally Cannot Be Expected
Tone Vays, one of the former Vice Presidents at J.P. Morgan hosted a Bitcoin Halving live stream. The pseudonymous Bitcoin quantitative analyst PlanB made a comment that an immediate rally after the halving cannot be expected. Instead, the cryptocurrency market will be affected by volatility in the short term since the cryptocurrency in question has traded at $8100 and $9200 within the previous six hours of the halving.
The same sentiment was also shared by Tim Draper who is a long-time venture capitalist. He became a familiar face within the Bitcoin space when he purchased more than $17 million worth of assets in an auction held by the U.S Marshals Service. In response to the query of industry outlet CoinTelegraph, he showed his suspicion that a prime rise may be witnessed roughly within six months after the halving. Some may hope for an immediate jump, but it is unlikely to happen.
Long-term growth can be expected in the Bitcoin market
In the same live stream, the founders of the Gemini cryptocurrency exchange, Tyler Winklevoss and Cameron Winklevoss were also present. They shared their thought through the statement that exceptional growth is prepared by the Bitcoin halving. They said that the industry is going to witness another order of magnetic step up.
With $20,000 of the Bitcoin base, $100,000 is expected to be seen. With every halving, the cryptocurrency will become exceptionally bigger beyond anyone’s imagination. The Chief executive officer of Pantera Capital, Dan Morehead thinks the same. He once wrote that Bitcoin may reach a peak of $115,212 within the next four years.
What A Trader Must Do
With events like Bitcoin halving and other financial changes occurring all the time, the cryptocurrency market is now quite volatile. Although you can earn high profits by trading, you also need to remember that there are risks as well. Especially if you are a beginner, then there is a lot that you need to learn and understand. You can only become a successful trader after gathering enough experience. To start risk-free, it is a great option to practise trading on a demo account with virtual cash. Many established brokers for cryptocurrency trading in South Africa offer demo accounts to their clients. Before going real-time and put your hard-earned money on stake, apply your trading strategies and test them on these accounts.
It is always hard to predict the future when it comes to the trading market. For now, we have to be content with the assumptions of experienced analysts and decide on our strategy accordingly.