Ever since Bitcoin showed up and triggered a technological revolution that brought thousands of cryptocurrencies into the financial world, the top coin has had two network reward halving events in 2012 and 2016. In both these periods, Bitcoin’s price garnered some support and had strong build-up before and after the event.
History Could Repeat Itself
In a tweet, Rekt Capital outlined the historical price movement of Bitcoin with respect to the various halving periods. From the information availed, it’s pretty clear that the Bitcoin price mechanism has adopted a rather uniform market reaction in years preceding the halving event.
As such, some analysts believe that if the top coin replicates this apparent price mechanism in the runners up to the network reward having slated for May 2020, the crypto could mount a serious bull run that could surpass its All-Time High.
According to Rekt Capital, Bitcoin’s price usually enters a new cycle and sets a new high prior to the halving event. In this case, Bitcoin’s previous high happened a few months to the end of 2019, mounting to hit around $13,900. If the cycle holds, the crypto will be expected to top this high, probably reaching upwards of $14,000.
Halving May Not Impact Price
However, there are still those who feel that the historical price action may not happen this time around. One of these people is Nic Carter who believes that a change in Bitcoin’s supply isn’t likely to affect its price.
Nic argues that since the halving event is already expected, it’s not likely to come as a shock or upset the market as an information shock would normally do. Nic is co-founder of Coin Metrics, a crypto tracker company based out of Boston.
Others include Scott Freeman, Kyle Samani, Eric Turner, who think that Bitcoin’s halving effect is already priced in the market and therefore isn’t likely to have much effect on the crypto’s price when it finally happens.