After May, when Bitcoin halves, the largest cryptocurrency will have an inflation rate of 1.8%, lower than for gold and the US dollar. This only increases the asset value reserve because it really becomes a better value store than any other refuge.
The halving happens when miners receive half of the planned block reward they currently receive for validating transactions on the Bitcoin network. The halves were developed by Satoshi to increase the scarcity of the existing Bitcoin offering, increase the price, start new users and create a positive feedback loop that increases acceptance of Bitcoin. They take place every 210,000 blocks or approx. 4 years.
Just before the last fall in half, we saw a similar formation of a gold cross on the BTC / USD chart, which caused a price increase of 218% as Bitcoin reached its high level all the time. Traders have not forgotten this lesson and appear to position themselves in anticipation.
As of this point, Bitcoin is trading at $ 10,021 after falling to $ 9,480 over the weekend. As the gold cross on the chart is confirmed today, we have seen that the volume of the longline has again raised the price above the psychologically important price level of $ 10,000.
Bitcoin may not yet be in a full bull market, but investor sentiment is currently pushing the commute in this direction. We can see a half bullish attempt and then see a retracement immediately before or after the event.
THE BITCOIN OF LESS THAN 10,000 MAY BE A PAST
Many cryptanalysts have predicted that we will never see the price of BTC below 10,000 again, but with the Golden Cross, it may actually be the last catalyst pushing the price of Bitcoin to 5 digits permanently.
Bitcoin is often referred to as a deflationary currency because the plan for issuing new coins is shrinking. Ultimately, the supply and demand economic legislation will affect Bitcoin’s current supply and a reduction in the production of new coins, resulting in an overall price increase.
If the price of the BTC goes up, we can expect the Altseason to skyrocket due to its high correlation with the price of Bitcoin. We have seen many traders diversify into alts as BTC’s dominance has dropped dramatically in recent weeks.
Many altcoins have already surpassed Bitcoin this year and serve as leading indicators of the largest piece of market capitalization. Smart money has quietly taken positions in Bitcoin and Alts, while prices fell during the crypto winter.
If the media has a bullish fever, we can expect a new generation of curious investors to join Bitcoin and Altcoins, which will give institutions gathered massively across the bear market a passion for investing. retail.