This Bitcoin Halving will Make BTC the Second Asset to Have S2F50 after Gold

Must Read

Can XRP defend its price?

Could XRP defend its price action, and rise back to $0.30? Here is my view on how...

With a 110% increase in crypto wallet adoption rates in 2020 are we set for another Bitcoin boom?

2020 has been a massive year for crypto adoption. In July alone, over 3.5 million crypto wallet app downloads...

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

Bitcoin is maintaining its position above $9,000, a level it broke above earlier this week and staying strong here. Already, this strong move that broke the downward channel and 200 DMA has the weak hands out of the market.

“So I think we’ve just got rid of a lot of people, and what that means is weak hands are out. There is nothing more bullish to a market when you have a lot of bulls who are basically sold out,” said veteran trader Peter Brandt.

According to investor and trader Josh Rager, even if the price drops at $7,900-$8,000 level, this will scare people but would give a solid bounce at point of control.

“Price rejected off $9500 (as expected) & if a pullback comes, watching $8700-$8800 for a bounce,” he said.

Moving Closer to Gold’s Level

But things are about to get even more exciting as the date of the much-awaited Bitcoin halving keeps on coming closer. Now, it is less than 100 days away. This halving is scheduled to occur in May as the Bitcoin block mining reward halves every 210,000 blocks.

It is possible that the halving would come sooner because bitcoin miners are adding a lot of hash power to the network that has the hash rate jumping to a new all-time at 123 Th/s on Jan. 29. In order to keep up with this, difficulty adjustment is also hitting ATH at 15.4 trillion.

A few days might be here and there but the point is this time the reward will be reduced from 12.5 BTC to 6.25 coins.

Apart from this cut in rewards, there would be a supply shock as bitcoin inflation will be reduced from 3.68% to 1.80%, which is not only less than that of gold but also the targeted 2% of Federal Reserve.

Another exciting thing to happen with this halving is the S2F ratio of the digital asset that will double to 50. This would make bitcoin the second asset after only gold to have such a high S2F ratio.

Currently, BTC has an S2F of 25, closer to Silver’s 22 but the third halving will move it closer to gold’s 62.

But how the market will value it?

Now, as prominent analyst PlanB says the real question is how the market will value it. Bitcoin has already spiked over 27% in YTD.

Historically, we have seen the halvings correlating with a significant increase in the crypto asset’s price. However, some of the crypto community members believe this known event is already priced in.

But a good chunk of people still has bullish expectations from the event. Recently, PlanB conducted a poll on Twitter to ask the community if Bitcoin’s “halvening” won’t boost its price or cointegration between the price and stock to flow model will stay intact and drive bitcoin price?

The majority, 65.3% of the total 7,533 voters were in favor of Bitcoin price to rocket because of halving while 22% have no idea. Only 12.7% sees it as a non-event.

It happened in the past, it will “absolutely” happen again

Weiss Crypto Ratings is among that chunk who believes in the halving induced bull run. The firm that rates crypto assets says halvening will “absolutely” drive the BTC prices higher, the question is how much higher.

Halving, it says has always ushered in explosive price increases. And because of that upcoming surge, miners have been increasing their hash power to grab as much BTC as they can before the reward gets cut in half.

“The May halving event IS likely to trigger a major new surge in the price of Bitcoin and most other cryptocurrencies. It’s hard to imagine a scenario in which BTC does NOT rise to new, all-time new highs, easily surpassing the $20,000 level,” said Weiss Crypto ratings.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

Flyp.me Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...

BLOCKCHAIN OVERCOMES POSSIBILITY OF FRAUD, LACK OF TRANSPARENCY AND TRUST IN THE GAMBLING INDUSTRY

DATE: 07/08/2020 In a recent study carried out by the UK Gambling Commission reveals that the gambling industry has...

The Kuailian Ecosystem, Bringing Blockchain Technology To The World

10 years have passed since the birth of Bitcoin and the first use of Blockchain, a technology that has not stopped evolving,...

Its’ Finally Here A 100% Local Non-Custodial P2P Cryptocurrency Marketplace.

Finfreeotc is soon launching a one of a kind peer to peer cryptocurrency market place. Their marketplace is 100% non-custodial,...