Bitcoin Rally: Potential Reason For The BTC Surge
There have been surfacing all kinds of speculations regarding such a massive rally and one of them has been addressed by the Daily Hodl.
BTC supply shock in 2020
The online publication notes that the anticipation of a supply shock in 2020 is probably the main trigger behind BTC huge rally this year.
The publication cites the info from Alyse Killeen who is a partner at the investment group StillMark.
Killeen is a fellow at the Singapore University of Social Sciences, and she told Bloomberg Technology that she believes Bitcoin’s upcoming halvening is the number one reason for the surge.
BTC’s halvening is the main reason for this rally
“What I think might be happening is an anticipation of a coming supply shock in 2020. So what we’re looking ahead to is a halvening event. The way that new Bitcoin is introduced to the market is through a process called mining and the mining reward decreases by half every few years. And so in 2020, we’ll have much less of a daily supply of Bitcoin that we do now…”
She continued and said that while we’re looking ahead to the event and the supply shock, we can also see greater demand for BTC and new on-ramps for familiar and conventional sources, and this means that there is an “anticipation that there will be a broader group of consumers that have access and appetite for Bitcoin.”
Killeen said there have recently been “exciting progressions” regarding scaling the currency up to a level where it can be used for more purchases.
She also believes that BTC stands alone among cryptos regarding “stability, security, and dependability,” and that it will serve as the main store of value in the crypto ecosystem.
You can see more details on what she had to say in the video above.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.