Bitcoin Halving Will Reportedly Not Be An Easy Ride – Potential Factors
The crypto market is looking better today with the most important coin trading in the green today.
At the moment of writing this article, Bitcoin is priced at $8,646.56.
Bitcoin issues ahead of the halving
It’s been just revealed that a crypto analyst who has been known for applying the stock-to-flow ratio to TC said that Bitcoin is facing a number of issues as the 2020 halving approaches.
The halving happens about every four years, and it will slash the supply of new BTC entering the market in half in May of this year.
Plan B analyst said that BTC’s supply schedule is strongly linked to the price of BTC, he was the very first on to apply the stock-to-flow model to BTC – this tracks the circulating supply of an asset against the amount of new supply hitting the market.
Plan B said that the ratio is strongly correlated to BTC’s past price movements and it shows BTC hitting a high of $1 million in 10 years,
The halving is just around the corner and Plan B said that there are some issues that BTC must overcome “including regulatory uncertainty in the US, hacks and concerns about large sales of BTC from crypto hackers and the seemingly never-ending fallout from the collapse of the crypto exchange MtGox.”
The 2020 Bitcoin halving will not be an easy ride
Plan B also stated that 2020 Bitcoin halving will not be an easy ride and he tweeted some of the reasons for which this might happen.
2020 #bitcoin halving will not be an easy ride:
– US/Mnuchin: draconian anti-btc laws
– Craig Wright: legal & patent FUD
– Hacks: like 2016 halving (DAO,Bitfinex)
– MtGox & PlusToken selling narrative
– Miner death spiral & futures FUD
Risk vs S2F:https://t.co/FIMcEZWDPn
— PlanB (@100trillionUSD) February 18, 2020
Plan B also said: “Yes, the halving is priced in, of course. And so are all risks above. Together the market weights them and the outcome is today’s #btc price.”
A Twitter user posted: “My guess is there may be rules which make selling coinjoined #bitcoin difficult on exchanges.”
Someone else said: “US Government works hard every day to destroy the Reserve status of the USD. Hateful sanctions, AML, KYC laws make the USD a reviled currency. Dilution from constant printing makes the USD an asset people flee. They buy other assets cause the USD is constantly depreciating.”
Despite the huge volatility of the crypto market, there are still various optimistic predictions.
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.