Tag Archive : halving

Bitcoin is striking back as halving inches closer

Bitcoin is well on its way to regaining its lost dominance in the crypto market while challenging major altcoins as the big halving day approaches.  

After a quiet few weeks, Bitcoin is making its way up again and challenging altcoin dominance. According to a chart published by Messari researcher Ryan Watkins, ‘Bitcoin is well on its way to achieving the same market dominance that it did during the 2017 bull run.’ This essentially means that Bitcoin’s total share in the crypto market is on the rise yet again, thus silencing all its critics. Hence, investors and enthusiasts are likely to be more interested in placing their bets on BTC as opposed to other cryptocurrencies.

This comes after the tragic 2018 price crash, which prompted traders to move into altcoins, hoping to neutralize the risks associated with a bearish BTC trend. However, even amid the existing global pandemic and a pathetic economic scenario, Bitcoin seems to be making its way back into dominance. Interestingly, a crypto analytics firm, Messari also noted that the public interest in Bitcoin is also at an all-time high, similar to when BTC was close to its maximum ever price range. Recently, Google also reported that search queries with the word ‘Bitcoin’ in the last week of March were the highest ever that it ever received. 

This uptrend comes weeks before the much-awaited Bitcoin halving scheduled on May 12th. There is no ignoring the fact that, post 12th May, BTC’s inflation rate will be reduced by 50%, as mining rewards will be cut into half, and supply will also slow down. However, what this could essentially trigger is a bull run, as the demands will try to cope up with the reduced supply. 

Whatever be it, it is fair to say that the focus has now shifted from altcoins to Bitcoin, and the crypto community is eagerly awaiting the halving event. Let’s see how the BTC market reacts. We will keep you posted. 

Google Receives All-time High Searches Around Bitcoin Halving

Google Trends experiences an exponential surge around searches regarding the much-anticipated Bitcoin Halving.

The bitcoin having phenomenon is just around 20 days away, and the buzz around it is at an all-time high. As per Google Trends data, searches around the phrase ‘bitcoin halving’ have exponentially surged over the last couple of weeks. This week, the phrase is hovering at a search score of around 90 out of a hundred.

In the second week of April, it toughed at an all-time high of 100, which is the highest score a search query can obtain on Google Trends. 

What is Bitcoin Halving?

It is a mechanism that was integrated into the Bitcoin Protocol by its founder, Satoshi Nakamoto. According to this, every four years or 210,000 blocks, the total circulating supply of Bitcoin in the market is supposed to be cut into half.

The next halving is scheduled to be processed on 12th May, and after that, miners will be rewarded 6.25 BTC per block found. Moreover, after Bitcoin halving, BTC’s annual inflation rate will drop from the present 3.6% to 1.8%.

Why is there a Surge in ‘Bitcoin Halving’ Searches on Google? 

Cryptocurrency experts across the world are quite excited about the upcoming Bitcoin halving event. This is something completely new for those you have forayed into the crypto space recently. Some even expect that the price of BTC will rise after the halving phenomenon. 

According to a survey conducted by Genesis Mining, more than 505 of mining participants expect Bitcoin price to increase after 12th May. Some speculate that it could rise as high as $12,500 post halving. 

With so much anticipation going around the topic, it is not surprising that Google has received an all-time high search query scale about Bitcoin Halving. 

However, it will be quite interesting to observe the major cryptocurrencies path once the much-awaited BTC halving takes place in May. We will keep you updated with further news regarding this topic. 

COVID-19 Could Neutralize Post Bitcoin halving Price dump

Some cryptocurrency experts have speculated that the market crash brought about by the COVID-19 global pandemic could actually reduce the risk of BTC price dump post the Bitcoin halving. 

In a webinar discussion among top crypto experts, Chris Bendikson, Head of Research at CoinShares expressed his opinion about the possible crypto scenario post Bitcoin halving.

He believes that miners have already prepared themselves for the halving following the price crash in March. As a result of which there will not be much of an impact on their profitability, and the situation has compelled miners with backdated equipment to either drop out or upgrade.

Chris Bendikson thinks that there could be a slight volatility post the halving for a few months, but post that, the mining industry will find itself in a strong position with a low-cost base. 

He went on to add, “What that means is that miners are likely to not have to sell as high of a proportion of their mined coins as before the halving and the actual halving, when you add that to this, means that we’re potentially about to see a midterm bullish virtuous cycle in the making.”

Importance of Bitcoin Explained

Alex Laughton-Scott, Associate Director of CoinShares, on the other hands seemed pretty optimistic about Bitcoin. He opined that this is a perfect time for the world to understand and acknowledge the importance of Bitcoin, its uses, and its benefits.

He said that the post-COVID-19 Bitxoiun scenario could be a really bright one, and this period when the world is under a lockdown could well serve as a ‘brewing period’. 

Scott stressed on the fact that, amid any sort of crisis, ‘all correlations go to 1’. He explained that the price dump in March was further enhanced by stop losses and automated trades, apart from the low market cap, which eventually led to high volatility.

However, he is also optimistic about the fact that these correlations will eventually drop, and as they do, the institution will realize how crypto can fetch massive benefits during crises.