Post-halving Bitcoin forecast: what lies ahead for the biggest coin in the market?
08:20, 7 May 2020
Why do investors still stand by BTC in 2020?
From its inception in 2009, Bitcoin (BTC) introduced the world to the cryptocurrency space that continues gaining traction globally. Over the years, investors have given the coin a keen eye because, to some, it is the goose that lays the golden egg. This is not by mere coincidence because, for 11 years now, it has steadily reigned supreme as the leading cryptocurrency based on market capitalisation.
With a finite reserve of 21 million coins, BTC serves as a deflationary currency as its value increases based on its decreased supply with time. On the other hand, the fiat money that we use daily, such as the US dollar, is an inflationary currency as it is continuously printed, thus increasing its supply and reducing its value. For instance, the Federal Reserve (Fed) is now printing a whopping $6trn to pump into the economy based on the financial shocks triggered by the coronavirus pandemic that is wreaking havoc around the globe.
Conversely, Bitcoin’s adoption has been increasing at a hyperbolic rate because it has grown by 700 per cent in the past five years. It, therefore, shows the confidence that investors have in this digital asset, and this trend is expected to continue henceforth because, in many analysts’ BTC/USD prediction, the coin is projected to rise.
In this article, we try to foresee where the coin might be heading next by checking the market’s latest news and reviewing experts’ opinions on the BTC price forecast for the nearest future.
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What has been happening to BTC lately?
Across the crypto community, the trending news involves the much-anticipated Bitcoin halving event that is likely to happen on May 11. Why is it on everyone’s lips? Because pundits, investors and traders alike have a Bitcoin prediction of the coin’s price increasing henceforth.
Bitcoin halving is an event in its network that lessens the supply of these coins and it occurs every four years. The event awaited this month is the third to happen as the previous ones took place in 2012 and 2016. The mining reward for extracting Bitcoin is slashed in half from 12.5BTC to 6.25BTC.
Based on earlier experience, the BTC price is expected to be bullish post-halving. As the historical chart shows, the coin’s value tends to increase sometime after the halving takes place. For example, following the July 2016 event, the price raptured the roof by skyrocketing to a record-high of $20,000 in December 2017. Therefore, a rising BTC price in 2020 is now expected by many.
According to Google trends, “Bitcoin halving” searches are now hovering at nearly 90 per cent.
Meanwhile, the Bitcoin price trend has been showing a steady, upward trajectory since mid-March. One of the key drivers of the hike was the US Senate’s decision to greenlight a new coronavirus stimulus package worth $484bn making an upward BTC price in 2020 inevitable.
Recently, the US government decided to offer nearly 80 million American citizens stimulus cheques valued at $1,200 to assist them during these trying times. Nevertheless, the information provided by Brian Armstrong, the CEO of Coinbase, which is the top crypto exchange in the United States, depicted that $1,200 deposits had risen since the American administration started disbursing the stimulus cheques.
This data, therefore, shows the way some US citizens are bullish on BTC as they are investing their stimulus cheques in crypto rather than purchasing gas and food. They expect the BTC price in 2020 to increase following the halving event.
Russians are also following in the footsteps of Americans because they have turned to cryptocurrency and cash as Covid-19 continues grappling the world. For instance, in March they withdrew money worth $13.6bn from ATMs, and some of it is being invested in BTC.
Given that the coronavirus pandemic has triggered precautionary measures, such as lockdowns, quarantines and social distancing, the urge for Bitcoin online courses has escalated by nearly 300 per cent. This is based on information availed by two leading online learning platforms Coursera and Udemy.
The Bitcoin community has also been engaged in a noble cause of helping to build a medical centre belonging to the Italian Red Cross through donations worth $31,900. Italy has emerged to be one of the hardest-hit nations by Covid-19, as it has recorded more than 212,000 confirmed cases and at least 29,000 deaths. The community is, therefore, not only involved in Bitcoin projections, but also philanthropic drives.
BTC price history and analysis
The 10th anniversary of the Bitcoin Pizza Day will be held on May 22. This day is archived in Bitcoin’s history books as it shows the incredible journey that the leading cryptocurrency has endured.
Notably, Laszlo Hanyecz or ‘Bitcoin Pizza Guy’ traded off his 10,000 BTC on May 22, 2010, for two big Papa John’s Pizzas. At that time, one BTC was worth $0.0041. Fast forward, the 10,000 Bitcoins he used to buy the pizzas would be currently worth more than $80m.
Following this event, the Bitcoin price trend indicated a bull run after a new record was set on June 8, 2011, as it retailed at $32. Before the first Bitcoin halving event on November 28, 2012, the price shrunk to $12.76.
Nevertheless, almost one year after the halving event, the Bitcoin outlook had wholly changed because, on November 30, 2013, the price skyrocketed to $1,167.
During the second halving on July 9, 2016, the price fell to $664. On February 23, 2017, the record was broken at $1,167.50, and this sparked the notable bull run for an all-time high price of $20,000 by the end of that year.
The two BTC halving incidents play an instrumental role in predicting the coin’s future since some of the all-time highs were recorded precisely one year after the events.
So, what does the post-halving Bitcoin forecast 2020 look like now?
Bitcoin forecast: what lies ahead for the industry’s most renowned coin?
Bitcoin forecast shows that there is light at the end of the tunnel for an upward Bitcoin price trend. According to Longforecast.com, BTC price will be hovering around $11,500 by the end of this month from the current $8,800. This popular online forecasting service predicts that the price will rise to $13,000 by December 2020.
Similar Bitcoin projections for the nearest future are revealed by WalletInvestor.com. Based on their deep-learning Bitcoin analysis, a bullish run is expected for this cryptocurrency as BTC is predicted to hit the $10,000 mark by the end of this year.
As mentioned in his interview, Michael Novogratz believes BTC will retest its all-time high price of $20,000 by the close of 2020. He, however, attested that if this does not happen he might throw in the towel with regards to Bitcoin.
According to Tim Draper, the BTC price forecast he set in 2018 that the price would hit $250,000 in early 2023 or late 2022 is being boosted by what is currently happening in the world. He notes that the significant stimulus package presented by the US government will debase the dollar’s value and this will propel people to cryptocurrencies. Moreover, he trusts that a considerable commercial BTC adoption is on the horizon.
Is Bitcoin a safe investment?
Like any other asset, there is no definite answer to this question. In fact, it is very difficult to predict what the price of BTC could be in a few hours; and even harder to give long-term estimates.
For that, we always recommend you to arm yourself with as much knowledge as possible: consider the latest news, market trends, expert opinion and technical analysis.