Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
Bitcoin has failed to see three positive quarters in a row for the past three years. Bitcoin since 2017, indicating the health of the token which has battled to consistently see positive gains from quarter to quarter. If Bitcoin concludes on a positive incline with net gain in quarter four this year, it will be the first win since 2017.
#bitcoin hasn’t had three positive consecutive quarters since 2017 pic.twitter.com/MquSTEeL81
— skew (@skewdotcom) September 21, 2020
Bitcoin historic rally and possible future surge
Between the end of 2016 and early 2018, Bitcoin experienced five consecutive quarters with positive net gains. During that time – the end of 2017 – the cryptocurrency market hit its record high bull run with Bitcoin topping $20,000 USD. The rallies have been attributed to two key components: The mainstream adoption of the cryptocurrency industry in the Asian market and the Bitcoin halving midway through 2016. It’s worth noting that this Bitcoin halving has had no major impact on the price of the market yet, but analysts are predicting a surge as a result of the reduced supply coming in from the halving and the economic factors regarding the global pandemic.
Two other factors at play currently which could promote Bitcoin’s price to new heights are the declining price of the US dollar and the increasing price of gold. As safe-haven assets, gold and Bitcoin stand to gain as the dollar falls as investors pool their funds to hedge against the fiat currency. If more investors, especially large-scale whale investors, opt for cryptocurrency, it could skyrocket the price of Bitcoin to record highs sooner than anticipated.
Bitcoin rallies after halving events
Owing to the limit that supply faces following the halving event with the industry seeing a reduction in miners, the price of the token tends to match new, increased demand. Analysts at present are considering historic data, which points the major bull run rally to approximately 15 months after 2016’s halving and spotting trends for the future of the token. If the predictions are correct, Bitcoin price might just be looking at an explosive gain towards the end of 2021.