JANUARY 14, 2020 / 15:28 UTC
LONDON (Fintech Zoom) – Bitcoin Price Prediction 2020 by Moritz Putzhammer – Price development in 2020 will strongly be influenced by one major event: the Bitcoin-halving, expected to happen in the week following May 18, 2020.
What is a halving? Every 210,000 Blocks, so roughly every four years, the amount of BTC rewarded to miners for one block in the blockchain – the block reward – is being halved. Before November 2012 this block reward used to be 50 BTC per block, than 25 BTC and since July 2016 it has been 12.5 BTC. Following the next halving, the reward will decrease to 6.25 BTC.
Why is this important? Because at every halving event BTC miners earn less for their efforts but at the same time fewer BTC are being put into circulation. Given the fact that overall Bitcoin supply is capped at 21M, it will remain scarce and its inflation will (unlike with traditional money) remain stable.
How does this affect prices? Most analysts, including me, refer to the past two halvings and argue that increasing scarcity in BTC supply results in a strong price increase. This was the case after the first halving, following which BTC jumped above USD1,000 as well as the second halving, only 18 months after which BTC reached its current all-time high of USD20,000.
Combining the anticipated price increase following the halving with its expected date mid-year, I don’t expect extraordinary price jumps to occur as early as the end of 2020. Instead, my technical analysis shows that a moderate price increase toward levels ranging between USD12,000 – 20,000 seem plausible. If you would like to undertake such analysis yourself and trade automatically according to it, I recommend to check out platforms for algorithmic trading such as the one that we provide at trality.
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Bitcoin Price Prediction 2020 Halving