Bitcoin Price ‘Likely’ To Pass $ 10,000 Before Halting

Bitcoin investors are preparing for the long-awaited halving of 2020 – a supply squeeze that will see the volume of new bitcoin created cut in half.

This week the price of bitcoin has soared nearly 20%, peaking at $ 9,000 per bitcoin for the first time since late February, as excitement for this month’s halves builds.

Now, as the market weighs down the third price of bitcoin supply, one closely watched crypto analyst has said he thinks it is “likely” that the bitcoin price will climb above the mark $ 10,000 psychological before halving May 12th.

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“We think it is likely that [bitcoin] the price will go above $ 10,000 before the halving actually happens, “said Simon Peters, a bitcoin and cryptocurrency analyst at eToro brokerage, pointing to a” frenzy of activity among bullish investors. “

“While the halving itself is always likely to drive the price up, the bitcoin bulls have decided not to wait around and position themselves well ahead of time,” Peters added.

In just ten days, the amount of bitcoin being rewarded to those who maintain the bitcoin network, known as miners, will be halved for the third time, falling from 12.5 bitcoin per block to 6.25.

Bitcoin halves are expected to continue roughly once every four years until the network has generated the highest supply of 21 million bitcoins – something not expected to happen until well into the next century.

Peters also named a number of “tailwinds” that could increase the price of bitcoin over the next few weeks, including miners holding onto their newly created bitcoin, new consumers buying bitcoin, and fear of inflation driving people towards crypto.

“In terms of how high it can go in the longer term, in the midst of the declining economic outlook for the US economy and the likelihood of an ever-increasing financial supply, weakening the US dollar and bearing inflation fears, we believe it could easily prove past highs above $ 19,000. as investors look for safe havens away from traditional assets, “Peters said.

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While previous halves have announced a bitcoin price boom, the price has not necessarily climbed in the run-up to them.

“In 2016, I didn’t take part in the halving and everything was considered, it was a small incident. The real rally happened 18 months later,” said Catherine Coley, chief executive of BinanceUS, part of the bitcoin and crypto exchange the world’s largest. by volume, Binance, adding that it is “bullish” on bitcoin long-term.

The year after bitcoin 2016 halved, the price of bitcoin rose below $ 1,000 per bitcoin to around $ 20,000 in less than 12 months.

Meanwhile, BinanceUS has reported a surge of new users in recent weeks as the Federal Reserve runs into unprecedented difficulties to prop up the economy, which has been plundered by lock-ups caused by coronavirus.

“With unemployment and the impetus of flood funding [the] system, I think more people are looking for an alternative exposure to an unrelated market [the U.S. dollar], ”Coley said.