The renowned Mike Novogratz, founder of digital assets merchant bank Galaxy Digital, has once again voiced his predictions on the price of Bitcoin in light of the impending Bitcoin halving set for May 2020.
Some of them are skeptical and do not believe that Novogratz's words will flourish into a true price rally, while others suggest that BTC price hasn't been priced yet.
As with any market, it can still be important to rely on historical data when anticipating any type of price movement - especially considering that since the first halving, Bitcoin has skyrocketed 1,000 times in value.
Not priced in yet?If a price increase is what we are in for, then classical supply-and-demand forces are likely to be at work.
"If we consider Bitcoin a commodity like the CFTC does, then Bitcoin - like other commodities - has a built-in floor representing the cost of production. I think what we saw this winter may have been an established price floor set by the miners of around $6,800 - but as the block reward is cut in half, we can see the price floor rise to what many speculate to be just under $9,000."
20,000Paolo Ardoino, the chief technology officer of Bitfinex, claimed the market might see some FUD before the Bitcoin halving, saying: "By the end of 2020, I think the Bitcoin price will be at least $20,000."
Already priced in?On the other hand, skeptics are saying that the halving has already been priced in, and there is no point in breaking the piggy bank and rushing off to buy Bitcoin.
Commenting on the matter of the Bitcoin halving effect, Jason Williams, a co-founder at digital asset fund Morgan Creek Digital, said that the event wouldn't do anything to Bitcoin's price and would be a non-event.
Things to considerA lot of time has passed since 2012 and 2016, so things can still stay the same in terms of price movement, though it may easily not.
Ripple effects are still in force in the market, and the halving can cause many investors to panic, pushing Bitcoin prices into a spiral once again.
Half of Predictions Are Right Half the Time
Published on Feb 23, 2020
by Cointele | Published on Coinage
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