Bitcoin halving occurs about every four years. Now Bitcoin is on the eve of the supply constraint known as halving. So what will the Bitcoin halving event mean for the price of Bitcoin, and should traders buy Bitcoin (BTC) now?
Miner Awards To Be Halfway With Bitcoin Halving
Bitcoin halving is expected to happen towards the end of the day today. With the event to be held, the 12.5 Bitcoin awarded to Bitcoin miners will drop to 6.25.
Nobody knows how Bitcoin price will react to a decrease in supply, but many in the Bitcoin and cryptocurrency community seem to be confident that the price of Bitcoin will rise to new heights. But in the short term, the Bitcoin market is expected to be quite volatile.
Increased Volatility Expected Before Bitcoin Halving
“Today, we will see increased volatility and trading before Bitcoin halving,” said Marcus Swanepoel, CEO of London-based Bitcoin and cryptocurrency exchange Luno. said.
Bitcoin saw a big fluctuation before halving last week. While Bitcoin was under $ 9,000, it went above $ 10,000 before the weekend retreats.
“Returning to $ 8,000 was not a big surprise, we will see increased volatility in May due to the pandemic and halving activity,” said Rich Rosenblum, trader manager of the Hong Kong-based crypto market maker GSR. said.
Bitcoin has been one of the best performing assets since the coronavirus epidemic collapsed the global market in March, and Bitcoin has more than doubled its price levels of around $ 4,000. Also, many Bitcoin and cryptocurrency exchanges have reported increased numbers of users and transaction volumes.
Bitcoin (BTC) Leaves Traditional Assets
Scott Bitcoin, co-founder of New York-based Bitcoin and crypto-based corporate trading company JST Capital, said, “Bitcoin has risen over 100% in the past few months, and we believe most of this increase is due to constant retail demand.” said.
“We expect to see the ongoing volatility and good long-term risk reward in Bitcoin and also expect it to behave unrelated to traditional financial assets.”
Bitcoin Moves Towards New Gold
Meanwhile, the Bitcoin and crypto community was shaken after legendary macro investor Paul Tudor Jones revealed his views on Bitcoin. Paul Tudor Jones announced that he bought Bitcoin as a safe asset against unprecedented coronavirus and inflation, which he saw as a result of the central bank’s money issue. In a letter he wrote to customers, Jones said that Bitcoin reminds me of the role played by gold in the 1970s.
“We think this may be an important moment for Bitcoin,” Scott Freeman said after this statement. Freeman continued his words as follows:
Given the COVID-19 crisis and the easy monetary policies of major central banks, real money and macro investors are increasingly concerned about the value of traditional financial assets. Investors now see Bitcoin as a great protection against easy monetary policies and the upcoming global recession.