Following a sting of more than seven weeks of constant growth since the mid March market collapse, the price of Bitcoin has climbed more than $1,000 this week — the week preceding the Bitcoin mining reward halving. Bitcoin’s price is very close to crossing the all important $10,000 mark, but has met some resistance.
However, it feels likely that the price of the coin may well be able to break through the tough ceiling before the event on May 12, and if this is the case, the potential for the coin to keep growing is rather large. In general, the expectation for the price of Bitcoin following the halving is that it will continue to rise.
Even miners have shown signs that they feel it is worth holding onto Bitcoin now, as the price keeps rising, as the expectation is that the price is going to explode as the scarcity rises following a cut on its new supply.
That being said, it may all be a red herring as the price of Bitcoin is known to move before an actual event as it is known as buying the rumour, and selling the news. There is a big chance that the price of Bitcoin may not immediately take off after the halving, and it could even slump. Some predictors have already said that the halving price boost has already been priced in — but that was before this week’s gains.
$10,000 has long been a big number in the history of the Bitcoin market, it represents a halfway point to the coin’s all time high, and has often been seen as a bullish number since the coin’s 2018 bear market.
There is little doubt that the current price rally is in anticipation of the Halving, but it is certainly still a speculative impact on the crypto market. However, if the speculators can break through the $10,000 ceiling then the possibility of climbing following a big hit on the mining ecosystem.
Miners are known to play a big part on the market, even though it is not always clear why, but they do determine the health of the blockchain. When the halving does kick in, there is likely to be some sort of capitulation and lessening of the power of the market, which usually would accompany a market fall.
Many are not expecting this to happen based on the scarcity of Bitcoin, but it must be remembered that the bull run from the halvings in the past have been long term ones, and have not always happened straight after the event.