Bitcoins upcoming halving of the Block reward has long been seen as a bullish event, which is triggered because of its effects on the inflation rate of crypto-currency, an upward dynamics and historical precedents confirm this idea.
Important to mention: according to analysts, the short term impact of the halving on the bitcoin price development are in large part due to the fact that investors consider generally considered bullish, while the actual impact of the event for months (or even years) need to influence the price.
A key data metric seems to show that the Hype about Bitcoins imminent halving currency starts at the same time with the rate of decline of the crypto to wane and indicates that the Event will have in the near future will not be a bullish impact on the Bitcoin price.
The interest in Bitcoins, the imminent halving decreases in parallel with the price
Data from Google Trends offer an interesting insight into the correlation between the price of Bitcoin and the interest in the upcoming halving of the Kryptos – two aspects that appear to be moving in step.
The graph below shows search volumes for the terms “halving” and “Bitcoin halving” in the United States in the last 12 months. The graph shows a remarkable decrease in the search volume for the terms since the end of February, as the BTC of maximum levels began to decline at 10,500 $.
This seems to indicate that the interest of the investors in the halving is based solely on how it affects the price of the crypto-currency in the near future – which could mean that the persistent sell-out destroys the theory that the halving event will trigger a price rally.
Factors associated with the Mining Economy for BTC to show that downward movement could stand before
There are some simple factors related to bitcoin Mining Economics, which suggest that the Asset will learn in the coming days and weeks further losses.
These factors were explained by Jesse Proudman of Strix Leviathan – a crypto hedge Fund. As Proudman explains, would limit the revenue decline in the BTC-Miner is the access of this organization to debt or equity.
“Bitcoin-Miner”: – The income is reduced to ~62 days to the half. – The ability to obtain debt or equity, will be limited. Balance sheet other investments will be eviscerated. You can explain to me the bullish scenario in the next 60 days? And S2F, it is not…“
These impacts could damage the Bitcoin network in the short term, as smaller Mining-surrender business. Also, you could have the Mining Power in the hands of a less Cash-Flush organizations to centralize the survive the short-term impact of the event.
Bitcoin, currently at # 1 on the market capitalisation, has fallen in the last 24 hours, – 1.18%. BTC has a market capitalization of 142,83 billion $ in the case of a 24-hours-a volume of 40,95 billion $