Bitcoin started active growth. The price of cryptocurrency surpassed $8500, rising by more than 10% per day. Less than two weeks are left before the halving in the bitcoin network.
The first cryptocurrency went up to $8,652 on 29 April. Bitcoin added 11% just per day. The bitcoin capitalization approaches $159 billion, and the capitalization of the entire cryptocurrency market moves to $246 billion. Since the beginning of the month, bitcoin rose in price by a quarter.
According to CoinDesk, April is traditionally a month of growth for bitcoin. In 2013, 2016, 2017, 2018, 2019, the value of cryptocurrency always demonstrated a significant increase that excessed 25%. The only exceptions were detected in 2014 and 2015. However, the decline in those months did not exceed 5%.
If we compare bitcoin with other assets popular among investors, it takes first place in terms of return on investment from the beginning of the year. Since the beginning of 2020, the first cryptocurrency rose in price by 12%. That can be compared only with gold. The US dollar went up only 8.5%, while WTI futures fell by 86%.
It is expected that bitcoin will remain in the green zone within the next twelve days. That’s how many days remain until the halving in the bitcoin network, when the reward to miners for the mined block will be reduced by half. According to Matthew Dibb, co-founder of Stack Funds, the anticipation of the halving will push the price of bitcoin up. Investors will buy cryptocurrency, expecting a rapid growth rate after halving, he said.
The macroeconomic situation also plays in favor of bitcoin. Amid falling oil prices and a slowdown in economic growth, the authorities of the largest economies are taking unprecedented monetary and tax incentives to contain the economic consequences of the COVID-19 pandemic.
At the same time, some analysts do not expect a serious impact of the halving on the bitcoin price. This year the halving is a well-known and expected event, and it is unlikely to affect prices the same way as it did previous times, thinks Andy Ji, co-founder of Ontology.
The halving on the bitcoin network takes place every 210 000 blocks mined or approximately every four years. This mechanism is designed to contain inflation rate in the bitcoin network by reducing the supply of new coins to the market.