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Cryptocurrency experts predict bullish impact of Bitcoin halving

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The largest event in the cryptocurrency calendar is almost upon us, with the Bitcoin block reward halving being just one week away, here is what the experts have to say about its perceived impact on price action.

According to Simon Peters, analyst at investment platform eToro, the halving could not only see the price of bitcoin rise, as it has done following previous halvings, but it could also result in a whole new brand of crypto investors.

Peters explains: “During and after the first halving in 2012, the key investors were those already involved in the asset class. The bitcoin investor base was almost exclusively made up of those in the know; blockchain scientists and data programmers as well as libertarians interested in the idea of a monetary system outside of political influence and central bank control.”

He then concludes that the halving will cause an increase in retail investors leaping into the world of Bitcoin as mainstream media will begin to focus on its potentially surging price, as it did in 2017.

The CEO of cryptocurrency exchange Luno is also bullish, insisting that volatility will return to the market tomorrow as much of Asia is off today.

Luno’s CEO Marcus Swanepoel said: “We ended last week on a bullish note with Bitcoin pushing above $9,000 only for the price to drop over the weekend. However, this morning we have seen BTC again push above $9,000.

“This second move higher in a short period of time is positive and could be the first indication that we have now started the run into the halving. Parts of Asia are again off today, but when they return tomorrow we will be just a week away from the halving so can expect to see an increase in volatility.”

But as previously stated in Coin Rivet’s daily technical analysis, a bullish breakout is far from certain as it still needs to trade above $9,600 to take out the diagonal trendline dating back to December 2017.

It’s also worth noting that price fell by more than 30% following the previous Bitcoin halving in 2016 before beginning to rally months later, so the effects of this year’s halving may not be as immediate as many suggest.

BlockFi co-founder and CEO, Zac Prince, believes the halving is “perfectly timed” as a result of macroeconomics having shifted as a result of the coronavirus.

“Bitcoin has already bounced back from its losses stemming to pandemic market reaction.” He said.

“It’s increasingly being seen as a safe haven investment to diversify portfolios and as more people see the value, on top of ongoing peripheral retail pressure, we believe we will see the price rise steadily, and at times rapidly, over the next few years.”

To keep up-to-date with coverage on the upcoming Bitcoin halving, click here.