Following the recent, highly publicized Bitcoin Halving (BTC) event, many in the industry had anticipated a drop in value, especially after BTC dropped to just $8,100 on May 10. However, after the uncertainty mentioned above, the flagship cryptoactive proceeded to gain 6% and climb to around $9,500 in less than 48 hours, and could now head for the $10,000 mark.
On Monday, crypto-miners around the world saw Bitcoin’s native reward ratio halved – from 12.5 BTC to 6.25 BTC – inducing an air of uncertainty about the price of the currency. This is because after the event the miners have been forced to calibrate their operations to match their reduced revenues, as well as their higher daily costs. And although many traders and analysts had expected the volatility and turmoil to increase following the halving, most of these fears have not materialized so far.
In fact, with only a few days left before the quadrennial event, many cryptomoney experts now seem quite optimistic about Bitcoin’s future valuation, and some even say that Bitcoin may once again prove its previously high value. For example, eToro’s Simon Peters recently commented that he wouldn’t be surprised if
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were to re-enter the „$20,000 to $50,000 per bitcoin“ region in the next 18 months.
Post-Halving Price Stability Can Drive Adoption
To better understand whether Bitcoin’s recently completed halving was capable of meeting the expectations of the overall cryptomint market, Cointelegraph contacted Tim Rainey, the chief financial officer of Greenidge Generation, a New York-based hybrid power generation and cryptomint mining company. In his opinion, halving, in general, met the expectations of most established mining companies that sell a considerable amount of Bitcoin every day, he added:
„It may not have met the expectations of many hodlers who, encouraged by the media hype surrounding halving, expected the event to cause a huge increase in the price of Bitcoin.“
As mentioned above, the price of Bitcoin remained stable after the event, although most experts expected a slight drop immediately after the event. Not only that, the hash rate of the currency’s native network also remained relatively stable. These factors seem to have instilled more confidence in the hearts of investors who said that such figures could result in increased adoption of Bitcoin around the world despite the current coronavirus pandemic that has been ravaging the global economic engine for a couple of months now.
Bitcoin surpasses $9,500, while analysts stress the „decoupling“ of stocks
Explaining his views on the issue, Chris Yim, the co-founder and CEO of LibertyX – a Bitcoin ATM, teller and kiosk operator based in the United States – told Cointelegraph that having been an active part of the crypto coin industry for more than six years, he has learned that Bitcoin halving events cannot meet everyone’s expectations in a uniform way:
„Personally, I’m encouraged by the relative lack of volatility this time compared to 2016. The industry has made huge jumps in the last 4 years. The main risks of the last halving have been resolved (for example, the failed fork of Segwit2x, the lack of the post-halving ‚death spiral‘ for miners)“.