Bitcoin halving in 2020, has it lived up to the hype?
As one of the most anticipated and talked about events in the crypto space, many reputable cryptocurrencies have shared their thoughts and predictions. If you missed something, you can check out some of the predictions in our latest content.
So, what happened after the halving? Did it live up to the hype? Has there been a dramatic recovery? Have there been any predictions so far that have come true?
The “celebrations” when the Bitcoin halving countdown ended were quite “festive.” With 11.9K tweets, # BitcoinHalving2020 was trending in the top 10 on Twitter, while the crypto Twitter community including Bitfinex, can be celebrated as if it were New Years Eve.
Meanwhile, some crypto media and personalities also had live countdowns for cutting Bitcoin in half. The event was also widely covered by various mainstream media outlets such as BBC, Reuters, CNN, and Forbes.
Aside from the festivities, within just 3 hours of the halving; Bitcoin saw short-lived volatility that saw its price drop to USD 9,100 and USD 8,200. Many crypto analysts said more volatility is still expected in the coming months.
As for the halving of transaction costs, it remains to be seen whether these would rise as predicted by many. After reaching $ 5,160 at 14th May, the highest so far in the past six months, is the Bitcoin average transaction costs to see. At the time of writing, the median fee is $ 4,092.
Meanwhile Bitcoin hashrate shows a downward trend, as predicted, after hitting its ATH – 137.5713 EH / s – for some time during the half-day. It’s 85.8065 EH / s per write time. One of the possible reasons is that because the price of Bitcoin has not seen a rise yet, some miners may decide to shut down their mining equipment.
As hedge fund manager Matt D’Souza tweeted, “IF Bitcoin stays here or the trends are lower, it is the start of closures. These closings will provide a much needed short-term cut in margin for surviving miners after the 50% surplus in revenue. As Bitcoin rallies, the closings don’t have to take place. ”
He went on saying, “Key Factor: 2016 as a precedent: Up 80% to halve – 30% corrected, but bottomed out and up within 3 weeks. We didn’t get a rally this time and we corrected 20%. I expect to start rallying again in 2-3 weeks, which eases the pressure on miners. “
Meanwhile, Morgan Creek Digital co-founder Jason Williams is more optimistic than he tweeted, “#Bitcoin looks so solid after halving. Looks like we’re going up from here folks. I can’t see what’s getting in the way of this animal. ” Followed by: ‘I bought here. Feel confident that there is little chance of a dip to 6800. “
When asked for his opinion after the halving, Plan B also has an optimistic view of Bitcoin. The crypto personality with 101.5 thousand followers on Twitter shared his predictions with us, saying, “Short term prediction is tough, I will keep it within my range for 2021-2024 of 55-288 thousand longer term.”
In the past, Bitcoin halving events have always been followed by extreme volatility. That said, a positive trend in the Bitcoin price that eventually led to a bull run was also correlated with the halving events. In 2012, when the first halving occurred, it took about 12 months for Bitcoin to hit a historic gain of nearly 8,000%, bringing the price from $ 12 to about $ 1,000. The second time it happened in 2016, it took a little longer – 17 months – for Bitcoin to move from $ 650 to its ATH, $ 20,000.
Now that the block reward has been reduced to 6.25 BTC, the Bitcoin creation rate slows down, meaning there will be a lower total supply of Bitcoin. Some experts believe that, given the current global situation with the ongoing pandemic and global economic recession, many people are looking for a financial safe haven, which would reportedly spark an influx of interest into Bitcoin.
Where do you think we’ll go from here?
Moments after cutting Bitcoin in half can make some people feel uncomfortable because there are so many different analyzes and predictions circulating in space. But as great strategist Sun Tzu said, “In the midst of chaos, there are opportunities too.”
When the time is right to seize the opportunity Bitfinex is here, and we are ready to serve you and bring you the ultimate trading experience.