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.

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