Bitcoin’s mining rewards halving event has long been looked towards as a bullish fundamental event that would catalyze a massive BTC uptrend due to the resulting inflation reduction.
In spite of this, one prominent angel investor is now noting that the supply reduction resulting from this event will be “tiny,” and that it is highly unlikely that it will directly lead to any type of massive short-term growth in the cryptocurrency’s value.
Importantly, however, the same investor does note that he believes there are multiple other events and developments in 2020 that could catalyze the next uptrend.
Bitcoin Halving Fast Approaches, But Its Supply Shock Will Be “Tiny”
Currently, Bitcoin’s mining rewards halving is slated to occur on May 12th of this year, which is only 97 days away.
This event, which is an integral part of Bitcoin’s fundamental structure, leads to an inflation reduction that is widely thought to be bullish.
The upcoming halving is set to reduce BTC’s annual inflation from its current levels of 3.68% to 1.80%, which marks an over 50% reduction.
This reduction is certainly bullish from a macro-perspective, but many analysts have noted that its short-term impacts on the cryptocurrency’s price largely stems from investors reacting to the event’s occurrence.
Qiao Wang, an angel investor, spoke about this in a recent tweet, telling his over 14k followers that in reality the halving is not the most important event of 2020, and that demand shocks from geopolitical tensions and loose monetary policies will be more notable.
“Consensus: #bitcoin halving is the most important event to watch in 2020. Reality: halving is a tiny supply shock. Demand shocks will be much greater, with increasing geopolitical chaos, record high stock/bond valuations, and faceless bureaucrats addicted to printing money,” he explained.
Consensus: #bitcoin halving is the most important event to watch in 2020.
Reality: halving is a tiny supply shock. Demand shocks will be much greater, with increasing geopolitical chaos, record high stock/bond valuations, and faceless bureaucrats addicted to printing money.
— Qiao Wang (@QWQiao) February 4, 2020
Digital Gold Narrative Could Also Bolster BTC
Wang also goes on to note that the digital gold narrative that has been encapsulating BTC over the past several months is another potentially bullish catalyst that could have a bigger role in where the crypto trends in 2020 than the halving.
“The digital gold narrative strengthens day after day, but the world will somehow attribute the great bull market of 2020 to a minuscule 2% supply shock,” he explained while referencing the halving’s inflation reduction.
The digital gold narrative strengthens day after day, but the world will somehow attribute the great bull market of 2020 to a minuscule 2% supply shock.
— Qiao Wang (@QWQiao) February 4, 2020
If the halving does catalyze a Bitcoin bull run, it will likely stem from investors collectively using the event as a reason to enter fresh positions, thus making its bullishness a self-fulfilling prophecy.
Featured image from Shutterstock. The post appeared first on NewsBTC. origin »
Bitcoin is only 117 days away from a block rewards reduction event that affects the number of tokens that can be generated every 10 minutes. Based on historical data, this event tends to serve as a catalyst that propels the flagship cryptocurrency into new all-time highs.
Bitcoin is only 117 days away from a block rewards reduction event that affects the number of tokens that can be generated every 10 minutes. Based on historical data, this event tends to serve as a catalyst that propels the flagship cryptocurrency into new all-time highs.
In May 2020, Bitcoin will undergo its third halving event to date. In previous years, the six month period preceding the scheduled supply reduction has been accompanied by price gains between 1. 7x and 2.
In just around nine months, Bitcoin (BTC) will see its next block reward reduction — dubbed “halving”. Despite this rapidly approaching bullish event, however, the cryptocurrency market has stagnated, establishing a trading range.
After the new yearly high of $147 on June 22, Litecoin has depreciated almost 25 percent signaling that hype around the upcoming block rewards reduction event could be already priced in. Litecoin technical analysis On Aug.
47 days before the 2015 block rewards reduction, Litecoin’s value began declining with a 70 percent pullback following a 590 percent surge. Now, only 45 days away from this year’s halving after a 540 percent gain, LTC is showing signs that a correction is underway.
Litecoin has been surging amid the upcoming block rewards reduction. LTC’s market capitalization recently increased by $2 billion leaving Bitcoin Cash behind. Now, as the bullish trend continues the question is, “will LTC flip XRP?” The Halving Event Fifty-five days from today, at exactly block 1,680,000, Litecoin will go through a fixed process called halving […]
The post Could Litecoin overtake XRP before the halving? appeared first on CryptoSlate.
Litecoin (LTC), one of the earliest Bitcoin forks, is only 100 days away from a block reward reduction event that plans to make it harder for the tokens to be mined—which could make the circulating supply of LTC more valuable.
Global payment processing platform PayPal has been awarded a patent for a technique that can help with the timely detection and reduction of ransomware attacks. Ransomware attacks are a form of malware that takes over the victim's computer, locks up the files therein and demands a ransom before the files can be accessed again — often to be paid in cryptocurrency.
Òhe WINBIX marketplace aims to create a new channel for sales, allowing participants to sell goods at the demand prices at any time.
The system uses the reversed auction model. The price of the goods decreases until one of the participants stops the auction.
Last year, the narrative was that institutional money was going to wrest cryptocurrencies from bears’ grasps. This year, it seems that investors are latching onto the impending Bitcoin (BTC) block reward reduction (halving), which will reduce natural selling pressure on the crypto market.
As Bitcoin moves ever closer to its block reward reduction, analysts are becoming more and more convinced that BTC will rally into the quadrennial event. One analyst notes that as this market nears the auspicious shift in issuance, the cryptocurrency could double by value, especially considering historical trends.
Here are the three best crypto presales to join in 2025, as many traders go crazy for the new DeepSnitch AI crypto after its 100X launch rumors go mainstream.
The cryptocurrency market has rebounded following a poor start to the week. Bitcoin, the leading cryptocurrency by market cap, is trading above $93K after surging by 7% since Tuesday. The rally has affected altcoins too, with Pi Network (PI) adding 2% to its value at press time.
The crypto derivatives market passed through a rocky 24-hour period on December 1, 2025, with the crypto total liquidation soaring across the key exchanges.
Noomez is emerging as the best crypto presale as Stage 6 approaches. Fixed pricing, burns, and rising traction push savvy investors to secure early positions now.
Canopy is a new infrastructure project that aims to re-imagine the way Layer-1 blockchains are built and operated. The team is introducing an auto-scaling L1 framework designed to make spinning up sovereign chains significantly easier than the rollup architectures most teams rely on today.
