- After the 2009 halving process, almost three weeks are left for the Bitcoin for its third halving activity.
- Looking at previous halving events of the Bitcoin network, it can be assumed that the price tends to recover after the halving process.
- The billionaire investor Tim Draper considers Bitcoin’s price will be going to rally $250,000.
After the 2009 halving process, almost three weeks are left for the Bitcoin for its third halving activity. Halving is a rule which is integrated with the Bitcoin code that makes the mining rewards for cutting down by half every four years.
Upcoming Bitcoin halving predictions
During the halving process, the network controls inflation at the same time, making the Bitcoin to go for a maximum supply of 21 million coins. However, as the halving is approaching this year, investors and speculators are interested in what holds in the future for bitcoin, people are speculating possibilities of pre and post-halving rallies.
The co-founder of PoWx Michael Dubrovsky quoted, if miners have less to sell Bitcoins, there will be fewer Bitcoins available to buy. Thus, deduction in mining reward will result in very less number of Bitcoins coming into the market due to lower supply.
Moreover, if the demands remain the same, then the price per Bitcoin will increase simultaneously. Also, if the market comes across an upsurge in demand as the institutional investors and other optimistic parties will possibly capitalize on the increasing price of Bitcoin, a significant price momentum will be predictable in the coming months following the Bitcoin halving.
Former halving events have created chunks of millionaires
Looking at previous halving events of the Bitcoin network, it can be assumed that the price tends to recover after the halving process. In 2012, after the first halving, the bitcoin saw a huge movement of price from $11 to $1,000.
After the second halving in 2016, the historical rally was seen when Bitcoin price uptick from $700 to $20,000. Furthermore, the coming halving is likely to bring in notable profits to Bitcoin’s price.
The billionaire investor Tim Draper considers Bitcoin’s price will be going to rally $250,000. At the same time, a commodity trader Raoul Pal notified that Bitcoin tends to kick $1 million if its market capitalization surmounts to match with that of gold.
Bitcoin’s previous halvings have produced chunks of millionaires; for example, J.R. Forsyth is one among the individuals who gained from Bitcoin massive growth over the years.
Therefore, it can be predicted that if the upcoming May halving resulted in substantial gains comparing the past two events, there would be more Bitcoin millionaires created in the virtual currency ecosystem.