Bitcoin seems to be on a delicate balance, giving rise to varying speculations of which direction it will go next. While a segment of the crypto community anticipate an upward breakout for a significant price rally, some others are thinking otherwise. Whatever your opinion, the timeframe being considered will have a role to play on what you think about the Bitcoin price action.
The Effect of Bitcoin Halving
Certain events are sacrosanct to Bitcoin, and they play key roles on how the cryptocurrency develops. One of these events is the Bitcoin block reward halving, otherwise known as Bitcoin halving. According to Jason Cassidy, Founder and President of Crypto Consultant, it is one of the biggest events in Bitcoin’s young history, and it is about to take place again in the spring of 2020.
Cassidy notes that the knowledge that this event is going to take place sets the narrative of what is going on in the Bitcoin market. In his opinion, the real question should be, “is this event, this reduction in supply, priced into the market’s collective unconscious or not?
Cassidy tells Coinstituency that the market has not yet priced in this reduction of new coins coming into existence, given that this event happens once every four years. Also, the fact that Bitcoin, and cryptocurrency adoption as a whole, is still very much in its infancy.
Thus, we will likely see the halving event come and go without much fanfare. However, by the late summer or early fall of 2020, the next leg up in this longer term bull market will kick in. When this happens, we shall witness Bitcoin do what it has done many times in the past, “rally hard post-halving”.
Waking up Sleeping Altcoins
Bitcoin is the biggest and most prominent member of the entire cryptocurrency industry. At the time of writing, the market dominance of Bitcoin stands at 65.9%. This explains why Bitcoin has so much influence over the entire cryptocurrency market. It is not strange to see other altcoins follow the trend of Bitcoin almost all the time. When Bitcoin rallies, the crypto market turns green, and when it falls, it is red all over the place.
Cassidy believes that the expected post-halving rally will have a similar impact across the entire cryptocurrency marketplace, considering how the altcoins market has suffered for the past two years. This is a key note of interest to many participants in the cryptocurrency marketplace, whose investments are tied down in altcoins that have lost significant value.
According to him, the next post-halving rally should trigger the entire market to move up given the deplorable state of altcoins. Many coins that have been in what seems now like a permanent slumber will wake up and come out of it. This will help in propelling the entire cryptocurrency marketcap well into the trillions of US dollars.
“Ultimately I expect this rally to be the one that takes Bitcoin close to $100,000 USD per coin before what will be a rather spectacular crash, he says. “Bitcoin tends to behave this way over time after enough pressure has been built up, it only has one way to release this pressure and it does so in a spectacular way.”
The Bitcoin Reality
We are now in a time period where more and more people are aware of Bitcoin’s existence and the value proposition it brings to the table. This reality, coupled with the declining state of many nations today will push more and more individuals to look at Bitcoin as more than just a savvy investment. For many of these people, Bitcoin will be seen as exit plan from their nation’s floundering fiat currency.
We are living through the separation of money and state, a much needed step in the evolution of decentralization. Simply put, the biggest financial risk a family can make going into the year 2020 is to not own any Bitcoin.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.