Will Bitcoin Halving Initiate The Coin’s Bull Run?
Some market participants anticipate the next major Bitcoin bull run to be catalyzed by the imminent bitcoin halving mining rewards, scheduled for May 2020. It is due to the historical precedent of these events
Despite the anticipation, the blockchain and cryptocurrency research group, Messari, says the influence of Bitcoin inflation, produced by the halving, will be insufficient to bring about any striking upsurge.
However, they further noted that another reason exists for the event to bring about the uptrend. Previously, mining rewards halvings always have close correlation, with the beginning of parabolic price cycles that push Bitcoin to the new highest price of all time.
Market participants should note that only a few of these events have occurred in Bitcoin’s comparably short history. Due to the small sample size, the possibility of predicting what would happen in the coming halvings is amazingly tricky.
Bitcoin Halving Effects on Price Trend as Per Messari
In 2019, there will be a decline in Bitcoin’s inflation rate, from 3.7 % yearly to 1.8%, and may be insufficient to initiate the upsurge. The research group pointed out this on Twitter recently.
The tweet highlighted that the inflation reduction’s insufficiency to bring about a rise reminds the market that the scarcity of the cryptocurrency may infringe on a price rally. The coin’s price trends within the months that precede May 2020 will possibly bring insight into investors’ anticipation regarding the bitcoin halving outcome.