For months now, the Bitcoin halving event was a shining beacon that can restore the leading cryptocurrencies to its former glory. It’s not a secret that Bitcoin didn’t have an exactly booming 2019, and things weren’t great at the beginning of 2020. However, its price started growing in early February before being shot out of the sky by the coronavirus COVID-19 pandemic.
And, when everyone expected it to go into oblivion, Bitcoin’s price started climbing once again with the halving in its sights. The third halving event was scheduled for May 12 and widely anticipated in the Bitcoin community. Some experts believed it could skyrocket Bitcoin’s price while others were wary with their predictions.
In the end, May 12 came and went, and Bitcoin’s price didn’t flinch.
With great things expected of the third Bitcoin halving, many looked at it as a savior that could bring Bitcoin’s former glory back. It is fair to say that the much-hyped event did next to nothing. Bitcoin’s price may be on the rise, but the increments are too small right now to see the large picture. The reality is that the event was pretty dull, but things are different if you take a look at the technical indicators.
Right now, the world’s largest cryptocurrency is trading above the 10- and 50-day moving averages. This signals a strong bull’s market. Ahead of the halving, Bitcoin was stuck in a bearish market, trading for around $8,830. While the halving appeared to be a non-event, many experts are pointing at certain statistics beyond the price.
One of the key metrics worth pointing out is the mining difficulty – the next adjustment is due May 19. The number of Bitcoin addresses is another important factor, and after the halving, it went straight up. Experts are seeing this as a positive signal that may be pointing to the 2017 Bitcoin explosion. The price surges that year brought the cryptocurrency into the mainstream and it came after a successful halving. If history repeats itself, the latest halving could bring an influx of investors who aren’t into tech or computer science. That will be something to see.
More and More Investors Flock to Cryptocurrencies
In the wake of the coronavirus COVID-19 pandemic, more and more investors are flocking to cryptos, especially Bitcoin. Banks are printing money to support the economy, but if the pandemic lasts more than the expected, it could become a major problem. Not for Bitcoin, though. According to some experts, the halving could boost its price now that more investors are flocking to cryptocurrencies.
Demand for Bitcoin is pretty high right now with the uncertain state of the global economy. Many investors are seeing the cryptocurrency a much safer asset than bank currencies. While the pandemic has ruined other major assets, Bitcoin has done well. Many experts predict that the time for Bitcoin to shine is right now and fully expect its price to soar by the end of the year.
So, even though the halving turned out a non-event on the surface, it might be some time before we see the big changes.