Bitcoin is consolidating the move down seen in the first months of 2020 as BTC/USD is trading below the 50 and 100 weekly SMAs but above the 200 one. However, A recent poll published by Genesis Mining indicates that 50% of miners expect to see BTC’s price increase after the halving. The CEO of BitMEX crypto exchange, Arthur Hayes, has made some predictions for Bitcoin (BTC) and the global economy. In a recent edition of his Crypto
Bitcoin is consolidating the move down seen in the first months of 2020 as BTC/USD is trading below the 50 and 100 weekly SMAs but above the 200 one. However, this market remains weak and unless bulls can overcome the 10K hurdle BTC/USD is likely to remain under pressure for the remainder of the year. In fact, another bearish move below the 4000 mark could likely lead to the 3000 level and if the bulls lose this level, the cryptocurrency could spiral into selling off mode and revisit the early 2017 levels; that is to say BTC/USD would be worth 1000, conservatively speaking.
Bitcoin’s Third Halving: Survey Shows 50% of Miners Expect a Price Increase | Featured Bitcoin News
The block reward halving for BTC is 32 days away and crypto businesses and mining operations are steadily preparing for the event. Today, Bitcoin’s hashrate is hovering just above 100 exahash per second (EH/s) and one year after the 2016 halving, the digital asset’s price and hashrate climbed over 240%. Moreover, a recent poll published by Genesis Mining indicates that 50% of bitcoin miners expect to see BTC’s price increase after the halving.
Also read: Bitcoin Going Industrial: New York-Based Natural Gas Provider Sells Fully Compliant ‘Hashpower Contract’
When Satoshi Nakamoto designed the Bitcoin network, he created a system that cuts the block reward in half every 210,000 blocks (4 years). The infrastructure is predictable by design and we know that the BTC inflation rate will drop from 3.6% to 1.8% per annum after the halving in 32 days. The bitcoin halving is expected to happen on or around May 13, 2020, and there will be 63 halvings remaining after this one.
The Bitcoin Cash (BCH) halving took place on April 8 and the Bitcoinsv (BSV) reward reduction happened 24 hours later. At the time of publication, miners hashing away at the BTC chain have around 110 EH/s dedicated to the network. With a month left to go, many BTC supporters think that the halving will make the price rise higher due to the natural effects of scarcity mixed with current demand.
On April 7, the mining operation Genesis Mining published a research report that polls a slew of dedicated SHA256 miners’ opinions. The survey was done on March 17, and 750 respondents participated in the Genesis Mining study called “The State of Crypto Mining.” According to the survey, 293 participants or 39.1% said that they mine from home by purchasing their own mining rigs and managing hashrate from their homestead. Even though bitcoin mining is steadily becoming industrialized by large server farms and mining pools, roughly “one third believed that power will shift from large centralized groups to smaller home miners.” As far as the BTC halving is concerned, more than half of the Genesis Mining poll respondents think the price of BTC will rise after the reward reduction. The poll states:
50% of miners expect to see the price increase after the next halving.
In another report written by the data analytics and intelligence firm Xangle, the research explains some finer details about the last two halvings, the one at block 630,000, and the 2024 halving at block 840,000. Xangle’s findings show that since the first halving on November 28, 2012, the price of BTC soared by 8069% one year after the event. One year after the second halving on July 9, 2016, BTC’s price jumped by 284%. “Transaction volume soared before each halving event, but with low correlation to price,” Xangle researchers noted. Further, the study also highlights that out of all the market participants involved with BTC, miners were the “most affected” after both halvings.
Still, BTC’s hashrate jumped exponentially after the past two reward reductions. A year after the 2012 halving, the overall SHA256 hashrate had risen by 19,766%. 12 months after the 2016 block subsidy reduction, BTC’s hashrate grew 248%. Despite the major price and hashrate increases BTC witnessed after each halving, Xangle’s researchers warn that the third halving might be different.
“Pay attention to the hash rate change after the third halving event, as uncertain market conditions can be a variable this time around,” Xangle underlined. “The global financial market, including crypto, has been through a lot lately (high volatility, covid-19). Hashrate has already been adjusted after the recent price plunge,” the data analysts conceded.
Many crypto influencers think that the past halvings have shown that the price after the 2020 halving should rise significantly. “Within two years after the next halving, the price of bitcoin will surpass $100,000 and rise to $500,000 when it crosses the gold watch gun,” Bobby Lee, the founder of the cold storage cryptocurrency card company Ballet told the press last year. “Historically, we saw a price surge in the 1.5 years after the halving, so it’s highly possible we’ll see new entrants in the market,” Kraken’s COO Dave Ripley explained on April 7. So far, BTC took a big hit on March 12 otherwise known as ‘Black Thursday,’ but has since risen by 80% since then. For the past few days, BTC prices were above the $7K region but prices dropped below the $7K zone on Friday.
What do you think about the upcoming BTC halving? Let us know in the comments below.
110 exahash, 12.5 coins, 2012, 2016, 2020, 2024, 210000 blocks, 6.25 coins, 63 halvings, BCH, Bitcoin block reward, bitcoin cash, Bitcoin Design, bitcoin halving, Bitcoins, bitcoinsv, BSV, Cryptocurrency, data analytics, Genesis mining, industrialized bitcoin, industrialized bitcoin mining, inflation rate, per annum, prior halvings, reward reduction, Satoshi Nakamoto, Scarcity, State of Crypto Mining, Xangle, Xangle Research
Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Author: Featured by Jamie Redman
BitMEX CEO discusses predictions for Bitcoin
The CEO of BitMEX crypto exchange, Arthur Hayes, has made some predictions for Bitcoin (BTC) and the global economy. In a recent edition of his Crypto Trader Digest, Hayes said that the US government can print enough money to recover from the crisis caused by Coronavirus. But, due to the dropping demand for foreign goods and heavy hoarding of cash from American banks, he believes the US dollar will not flow to countries and business organizations that need it most. This will inevitably result in a massive fallout that will “destroy the global economy.”
The Fed can print as much USD as it likes, but the companies and countries that need it the most will not get it… I have no idea on timing, but the strong USD will break the back of the global economy and force a reset. The question is what the new system will look like.
The CEO noted that Bitcoin stands to benefit, especially if the US digitizes the dollar.
All I know is the setup for Bitcoin, the hardest form of digital money, could not be better. All manners of trust have evaporated. In order to solve for demand and supply destruction, governments will embark on the greatest fiscal stimulus binge the world has ever seen. It will not be paid for by tax receipts, it can’t be because 30% of the population is out of a job, it will be paid for by the printing press.
The kicker is that, in order to hand money directly to the people, governments will have to digitize their currencies. That will educate the populace on digital money. Once they understand fiat digital money, they will seek out the hard version to avert the ravages of inflation. If you believed that Libra could educate the masses on the joys of digital currencies, just imagine when everyone on Basic spends their food stamps via a mobile app.
Though Hayes says he’s unsure about the timing of his predictions, he expects a massive Bitcoin rally to take place this year, which will bring the cryptocurrency back to its all-time high.
As violent as the Q1 collapse in asset values was, we have almost 100 years of imbalances to unwind the ancient regime. My end of 2020 price target remains $20,000.