Bitcoin price rising after halving
13 May 2020
The price of Bitcoin is starting to make gains after its historic ‘halving’ event on Monday evening, which permanently squeezed the supply of the world’s largest cryptocurrency.
But Wednesday morning it had climbed another 1.4% in 24 hours, trading at around $8,829.
“With daily active Bitcoin addresses at the highest level since 2018, interest in Bitcoin could be heading even higher,” reported Coindesk. “While the halving was pretty much a non-event for most traders, many are keeping an eye on various Bitcoin-related statistics beyond price.”
Nigel Green, founder and CEO of deVere Group, notes: “The price had been rising steadily ahead of the highly anticipated event – almost three-fold in the last three months - and then dropped back just before and after it took place.
“This shows that there has been increasing retail demand for Bitcoin as investors see and understand the growing influence and huge opportunities of digital currencies in an increasingly tech-driven world.”
“With this in mind, large cryptocurrency investors, known as ‘whales’, accumulate crypto at much lower prices then start a sell-off to capitalise on this sustained growing demand.”
As Mr Green predicted, the price is now starting to rise again – it’s a trend that many experts say could continue for some time.
“In this time where governments are printing large amounts of money, the rate of new Bitcoins will keep going down," Muneeb Ali, co-founder of Blockstack told CNN. “But the demand for Bitcoins has increased.”
Meanwhile, Michael Sonnenshein, managing director of Grayscale Investments said: “This halving is transpiring at a time when governments are enacting unlimited amounts of monetary and fiscal stimulus.”
He added: “Bitcoins are now viewed as a safe haven — kind of like digital gold. It's a verifiable scarce asset with predetermined and predictable supply.”