As the halving event is looming, the roadmap of Bitcoin remains unchanged amid three uncertainties of global pandemic, policy response and economic response. The upcoming halving which is going to be held for third time is about to cut down miner’s bitcoin rewards into half. Halving usually takes place when a maximum supply of 21 million bitcoins reaches.
Bitcoin being the best performing asset over the last year, it can continue to outperform in the next years. It was the expectation of many investors that the price of Bitcoin would increase to over $20,000 per BTC in 2020. But whether Bitcoin will move towards the price segment is confusing because of current unexpected global crisis and some other events. But we expect the price to continue in the direction.
Central banks and governments are becoming active in money printers as the bitcoin sector braces for a supply shock. It is assumed that the Fed’s money creation will lead to dollar inflation and drive people to flee to that currency and gold. But whether it will be happened is uncertain because after the 2008 financial crash, a huge amount of dollars were created but yet no serious consumer price inflation has caused.
Equities in the stocks have come to the end of a ten year bull run and the collapse has been seen in the price of a number of key commodities. So it is expected that a steady build in the price of bitcoin to the end of the year can be seen with the levels of quantitative easing. Bitcoin is likely to continue its growing trends of outperforming most other major asset classes. During recent time, some packages were announced by lawmakers to follow this months CARES Act, which saw millions of Americans receive checks for around $1,200-some of which ended up in Bitcoin. 82% rise in daily users over the last month caught sight of BinanceUS mentioned in their report.
The exchange expressed their thought seeing this inflow of users that Americans are seeking for cost-efficient ways to get into BTC or out of crypto. Bitcoin price has seen a high rise in last one year and this increased the thought about Bitcoin of being safe-haven asset as a result of coronavirus pandemic. But we are yet engaged with price swings and volatility. So, let’s see what happens once the price increases.