Bitcoin Fell Below $9,200 – BTC Active Supply Is Dropping
The crypto market looks pretty gloomy today with all the coins trading in the red.
Bitcoin fell below $9,200 and at the moment of writing this article, BTC is trading in the red and the coin is priced at $9,201.17.
Bitcoin active supply is dropping
The next Bitcoin halving is scheduled for May 18th, 2020. A couple of days ago, the active supply of BTC dropped by 3.3% and now, people are buying more of the coin ahead of the halving event.
This is expected to increase the value of the most important digital asset.
The halving is an event that has been coded into the Bitcoin protocol and says that the miners who receive an amount of BTC for verifying a block of transactions 50% less for the work that they did before this event.
People are buying BTC before the event
The halving limits the acceleration of future BTC in the network provided that demand stays the same or increases, but the price of BTC will rise since the supply will be lower than he demand.
Bitcoinist writes that before an event traders and asset managers will probably go long on Bitcoin if they expect a price increase.
People who believe in the value of BTC are more likely to buy up and hoard.
The online pubcalition writes that “Mining events do not certify that people will make a profit from halving events — despite the positive results from past halving events.”
Judging from the falling price of BTC these days, people will probably continue to invest.
BTC price drop ahead of the halving
Just the other day, we were reporting that two crypto analysts mentioned by the Daily Hodl just said that the price of BTC may drop ahead of the halving.
They claim that BTC corrects before the event. They claim that BTC’s price retraces and after the halving the price rises exponentially.
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.