Top 3 Trends to Look Out for After The Bitcoin Halving: An Analysis By Experts
Yes, the Bitcoin Halving has finally taken place. One of the most awaited events in the cryptocurrency ecosystem was quote an uneventful one. The main reason for this, according to people familiar with the matter, were the exceptional circumstances leading up to the halving- the Coronavirus Pandemic.
In this article, we are going to look at the top three trends you should look out for after the halving. These three trends are going to help people who are looking to trade or invest in Bitcoins by logging into credible Bitcoin trading website.
Trend 1: The Bitcoin Price Rise in 2020
If you have been following the news and trends over the last few months, you will notice quite an interesting development. At a time when all major traditional assets are depreciating, Bitcoin I steadily rising in value.
After Bitcoin hit a record low, which has also been termed as ‘Black Thursday’, the crypto bounced to above the $10K mark to settle around the mid 8K level now. This is a good step in the right direction for Bitcoin, which has been accused of being too volatile.
According to well-placed sources at some of the leading crypto exchanges, Bitcoin is expected to reach anywhere between the $12000 to $15000 level this year. This is a good and stable rate of growth. This will help it gain some level of maturity.
Sudden spikes and sharp falls are always going to be something, which not a lot of people may end up liking. Experts state that 2020 is going to be the year, where we are going to see a stable and more mature Bitcoin go mainstream.
Trend 2: Decreasing Hash Rate and out of job Miners
One major aspect, which people were looking forward to during the Bitcoin Halving process, was the Hash Rate. Hash Rate is the amount of computing power required to mine Bitcoins. Leading up to the halving, the hash rate was oscillating wildly between great highs and lows.
Experts believe that the hash rate is expected to go down at least in the near future. One reason for the same is that the recent halving is going to make it very unprofitable for a majority of miners to continue mining.
The drop in benefits and the lower than expected rate of Bitcoin prices will contribute to many miners shutting down shop and shifting their attention to some other crypto. If figures are to be believed, the hash rate is going to come down to about 30% than what it was!
People also state that the rising electricity costs, old hardware (which uses lots of electricity) and the non-availability of raising more capital funds is going to be the major reason for the decreasing hash rate.
Trend 3: The Rise of Smaller Wallets and Normal Investors
Many exchanges and trading platforms are noting how they have seen a jump of almost 300% of wallets having less that One Bitcoin. According to the exchanges, this is a positive sign as it shows normal people have started to engage with cryptocurrency trading.
However, it is also pointed out that this large group also drives volatilities in prices. Normal people want to make a quick buck and buy and sell in a rather dynamic fashion (differences of a few dollars). This is a direct impact on the numerous trading platforms, which enable people to trade in Bitcoins in a simple and safe fashion.
Reports also show that ‘Bitcoin Whales’, wallets, which hold more than a thousand Bitcoins, also grew by nearly 15%. It is being predicted that the whales and the smaller wallets are going to see a lot of action in the next coming months.