Bitcoin has had a better year than it currently is having. At the moment, the number one asset has dropped way below $8,000 and is trading just a little above $7,500. The entire crypto market is patiently waiting for some sort of respite or a break from its current unpleasant trajectory but it would seem that the king coin would have to “work” really hard to keep itself from sinking any further.
According to Tuur Demeester, a founding partner at Texas-based crypto investment services firm Adamant Capital, Bitcoin’s ability to stay above $8,000 would be judged by positive demand.
In a recent tweet, Demeester stated that the only way Bitcoin can maintain $8,000 in the months before the highly anticipated halving expected in May 2020, is to pull in “net positive demand of $2.88B”. At that figure, the demand would need to hit about $100 million per week or prices might continue to fall. According to Demeester, “that’s what’s required to buy up all newly minted BTC at $8k in 200 days.”
Bitcoin miners currently receive 12.5 BTC per block and at the halving, this reward will be cut by exactly 50% to 6.25 BTC. The event is the most anticipated in the crypto sector and it is expected that in the next few weeks, most analyses, studies, and predictions that have to do with Bitcoin, would be calculated with the halving in mind.
History suggests that a major bull run would most likely follow the halving and prices are expected to surge in response. Bitcoin predictions are usually extremely optimistic, to say the least even without a halving and now with the halving in mind, many believe that Bitcoin would hit $50,000 or more sometime after the event. Some even believe that $100,000 is possible in a little over 2 years.
Crypto Rand, a crypto market pundit, has described the forthcoming halving as the “most dramatic yet”. This is because the scarcity predicted to follow the event is unprecedented and will cut Bitcoin’s general supply by as much as $63 million each week.
Now that Bitcoin has dropped below $8,000, maybe more than $2.88 billion will be needed in net positive demand to keep pre-halving prices stable.