Bitcoin And Crypto Traders Are Reportedly Misreading An Essential BTC Signal
The crypto market is again pretty bloody today, with most coins trading in the red at the moment of writing this article.
BTC’s halving might not be a trigger for a surge in price after all
It’s been just revealed that analysts who are labeling BTC’s halving as a key catalyst for boosting the price are not right, says Bloomberg Markets.
The process is scheduled to take place in May 2020.
It’s been reported that in the magazine’s newsletter, editor Joe Weisenthal said that the event which will be lowering the amount of BTC that miners earn and reduce the new supply entering the market by 50% is completely misread by the whole crypto community.
More crypto analysts are saying that the past price action is suggesting that this event is correlated to a rise in the price of BTC.
But Weisenthal says crypto traders shouldn’t hold their breath.
“In May of 2020, the volume of new Bitcoin creation will be cut in half, and the theory (hope?) is that with the diminished supply, the price will shoot up. You know, supply and demand and all that,” he said.
He continued and explained, “Of course, anyone who believes in even the weakest version of efficient markets would think this is nonsense. Markets move on surprises and unknown events, whereas the Bitcoin supply schedule is transparent for the world to see.”
A potential link between the halving and BTC’s price
Analyst Plan B brought up the stock-to-flow ratio and said that this metric is showing a strong link between the halving and BTC’s price.
He believes that BTC will hit $50k by 2021 and could reach $1 million over the next ten years.
Getting some questions about why in previous halvings (November 2012 and July 2016) it took well over a year for the market to start surging..
Well, it didn't .. look for yourself: in the chart the halving is when blue turns to red: the market immediately rises after a halving🚀 pic.twitter.com/geL71dJOV7
— PlanB (@100trillionUSD) December 3, 2019
Such optimistic predictions are flooding the crypto space despite the huge volatility in the crypto market.
At the moment of writing this article, BTC is trading in the red, and the coin is priced at $7,170.19.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.