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Bitcoin Halvening Will Hardly Affect BTC Price, Says Major Investor, But Crypto Expert Disagrees

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  • Yuri Molchan
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    A top executive of Morgan Creek Digital reckons that the next Bitcoin halvening will hardly impact the price, but the community still hopes for a price surge

Bitcoin Halvening Will Hardly Affect BTC Price, Says Major Investor, But Crypto Expert Disagrees
Cover image via twitter.com
Contents

The next Bitcoin halvening is to occur in May 2020 and the community expects the price to skyrocket, with some already preparing to buy Lambos. However, a co-founder and partner at the Morgan Creek Digital fund believes that the halvening may have very little effect on the Bitcoin price and even cause a big sell-off.

The Bitcoin halvening may be unhelpful

A co-founder of Morgan Creek Digital, Jason Williams, thinks that the impact the Bitcoin halvening is expected to have on the price of the flagship crypto can be tiny.

One the one hand, the amount of Bitcoin units generated by miners will dwindle by half, making the remaining coins (3 mln out of the 18 mln minted already) more scarce, i.e. valuable. On the other hand, Bitcoin miners will start suffering from losses in profit. As per Forbes, Williams believes that large miners will have to start selling some of their BTC to pay the bills, throwing more coins to the market.

Forget about getting rich quickly

In an interview, the investor stated:

“Large miners that are holding BTC will have to sell to cover operational expenses or use cash as revenue halves.”

“New buyers have to come in to move this market up. So other than a new headline, the halving is being dealt with now by those who are operationally effected by it. Those that don’t will be priced out of the mining business.”

Forbes reminds the audience that after the previous two halvings occurred (in 2012 and 2016), more than a year passed before the Bitcoin price started soaring. In 2016, right after the event took place, the BTC price first slumped from $707 to $570. This shows that immediate bullish expectations on the BTC price after the halving could be in vain. However, long-term ones are likely to come true.

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A crypto expert disagrees

On December 3, the crypto expert PlanB posted a chart, which shows that the crypto market responded to the previous halvings immediately by rising. He said he published that in response to the numerous questions as to why the market took over a year to rise after each of the halvenings.

PlanB reckons that the Bitcoin price will not be halted after the 2020 event, as it was back in 2016 due to ICOs.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Bitcoin Price Likely to Surge to $8,200 Before Surprising Bulls: Crypto Analyst

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  • Yuri Molchan
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    A crypto analyst says that Bitcoin follows ‘standard crypto games’ and expects BTC price to surge to $8,200 before making a market reverse

Bitcoin Price Likely to Surge to $8,200 Before Surprising Bulls: Crypto Analyst
Cover image via 123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

After Bitcoin bulls reclaimed the $7,400 level earlier, the flagship currency is holding in the $7,500 area. A crypto analyst says that these are ‘standard crypto games’ – Bitcoin is likely to surge into the $8,000 area before plunging again.

Bulls, get ready to rock - $8,200 on the horizon

At press-time, Bitcoin is swapping hands at $7,544. For a long while prior to that the price was trading flat in the $7,200-$7,300 area.

However, on Friday, the Bitcoin price managed to recover to the $7,500 level.

BTC price CMC
Image via CoinMarketCap

The analyst @CryptoMichNL reckons that Bitcoin is following a standard pattern of the volatile crypto market and is going to please the bulls before giving them a nasty surprise of a bearish reversal.

‘Bitcoin halving is the main catalyst’

The next Bitcoin halving programmed by Satoshi Nakamoto, the Great and Terrible, is to happen in May 2020. Many in the community believe it to accelerate the Bitcoin price surge since miners have not priced it in.

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Doubts about the BTC halving impact

However, a co-founder of the Morgan Creek Digital Jason Williams, the less Twitter-active than his colleague Anthony Pompliano, reckons that the Bitcoin price is likely to dip after the halving. The thing is that miners are going to get twice as fewer BTC for each new block than now and many of them are going to have to sell their BTC to pay the bills.

Besides, chances are high that small mining pools will quit since mining will stop giving them enough profit.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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