After a few days over the $7K mark which was seen as very positive news for Bitcoin, the price slid down the past few days. It’s not as sharp as a slide as the one back at the beginning of the COVID-19 pandemic, but it’s still a dip below $7,000 that saw many traders concerned.
Experts are adamant that the latest price dip is nothing serious. It may be a simple price dip before the halving on May 12 and a signal that Bitcoin’s price will rise after the event. However, many see recent developments in a negative light and doubt that even the upcoming halving can save the volatile cryptocurrency.
C’mon Baby Light My Fire
On May 12, Bitcoin is set to undergo the third halving in its relatively short history. For those unaware, halving aims to control the inflation of the leading cryptocurrency and will (not surprisingly) halve the price of Bitcoin created every 10 minutes. The unique code has worked great so far, putting Bitcoin on its way to price soars.
In short, the halving even that will take place on May 12, 2020, is supposed to light a fire under the leading cryptocurrency and keep it burning for a longer period. If you ask us, that kind of spark is exactly what Bitcoin needs in these challenging times. After the pounding in 2019, Bitcoin needs a good year to reclaim its spark. It started great in 2020 until the coronavirus pandemic messed things up.
On the positive side, many experts believe that the leading cryptocurrency by market share is in a good position. According to Forbes contributor and Bitcoin analyst Kyle Torpey, it is outperforming all other asset classes in the past 12 months. The current market turmoil has led Bitcoin to perform like the stock market instead of correlating with gold. This too, however, shall pass, and Bitcoin might emerge as the victor in the fight against fiat currencies.
Not a Bullish Halving?
There are two sides to everything and Bitcoin is no exception. Although halving has performed admirably in the past, this time around, many believe that it will not be a bullish event. Experts have pointed to the halving Litecoin underwent in August 2019 as the case in point. Litecoin’s price in the following months suffered a major blow, with even its hash rate suffering as a result of the halving. If this happens with Bitcoin, it could bury the world’s largest cryptocurrency for good.
The lackluster Litecoin performance showed that these events are not always bullish. Bitcoin may be looking for a savior on the horizon, but it might get bears instead of bulls. We can’t know for sure how the market acts, but in the short term, it’s a bullish trend.
It doesn’t turn much for the market to turn neutral, however. A further dip in price could signal a return for bears. We’re only a few weeks away from the halving, the most anticipated Bitcoin event in years. We’re hopeful that it could be a turning point for the leading cryptocurrency. Anything else would be bad news.