The upcoming third Bitcoin halving event will hold on the 12th day of May, that’s less than ten days from today. Unarguably, the momentous occasion has been making headlines within and across the crypto industry, some tend to speculate the fate of Bitcoin price after halving.
The basics of Bitcoin halvingÂ
The halving event is designated to slash Bitcoin’s mining reward by 50 percent, which facilitates the control of Bitcoin’s inflation and the rate of minting new BTCs. According to a tweet by Mati Greenspan, the annual inflation of Bitcoin will also reduce from 3.65 percent to 1.8 percent. This is approximately half of the global annual inflation rate.
Post-halving, the miners’ rewards will precisely be reduced to 6.25 BTC from 12.5 BTC after the halving. Previously, Bitcoin mining reward was settled with 50 BTC before the first halving occurred in 2012, which decreased the reward to 25 BTC in 2016.
How would Bitcoin react after the halving in the 12th day of May
It remains unclear what will be the outcome of Bitcoin price after the event; however, the price of Bitcoin had remained somewhat positive that it grew from $7,500 to a price level above $9k within a few days, although the price has declined below $9,000 again.
Some sentiments from cryptocurrency analysts tend to relate the sudden increase in Bitcoin price as a direct result of the soon-to-hold Bitcoin halving. This was backed with the opinion that many people are looking to add Bitcoin to their portfolio a few days away before the supply is reduced.
Meanwhile, the CEO at Binance.US, Catherine Coley, said that the effect of Bitcoin halving might not be witnessed as soon as expected. She made a middle-man statement, saying Bitcoin may see high adoption and a rally as well, or it might never see anything. She concluded:
We saw in 2016 that the halving itself was not an instantaneous reaction, but 18 months later we had the largest rally we’ve seen.
From the historical data, one can predict that Bitcoin is set for another new record; however, it is safe to say that this report is strictly not financial advice. It is rather advisable to conduct thorough research before investing in Bitcoin since it is a risky asset.
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