Bitcoin [BTC] will surpass its all-time high because of upcoming halving and institutional investors, says Brian Kelly

Bitcoin [BTC], the largest cryptocurrency by market cap, continues to be in the news after the cryptocurrency’s unanticipated double-digit rise earlier this month. The cryptocurrency also seemed to be sustaining its price post-surge quite well. This, in turn, resulted in several cryptocurrency market analysts opining on what they think will happen next.
On one hand, Tone Vays, a Bitcoin trader, presented two outcomes, first, with a bottom line of $3000 and a high point of $8000, and second, with a high point of $8000 or $10,000 without a drop. On the other hand, Brian Kelly, CEO of BKCM, affirmed that this was indeed Bitcoin’s resurgence, stating that the December 2017 lows were “probably” the lows for this cycle, in an interview with CNBC.
This was followed by Kelly explaining why he thinks Bitcoin has “probably” bottomed, stating that there are a “couple of things” going on. He listed the increasing number of active addresses, transaction levels, and network activities as some of the few reasons.
“[…] active addresses, that’s one of the big metrics I look at, that’s up 26% from the January lows, […] transaction levels those are back to 2017 levels, so there’s a lot of network activity. Then, you look at who’s buying this you’re seeing people like Fidelity still rolling out their institutional platform […]”
He also spoke about CME Bitcoin Futures, which recently made headlines after it recorded its all-time high. He said,
“[…] then as a proxy look at the CME Bitcoin futures, the large open interest holders well so these are big institutions those are at all-time highs […] so you’re starting to see institutional investors come in here with a good fundamental tailwind and that’s got Bitcoin back and back in the saddle again”
Kelly further stated that Bitcoin will see record highs “without question,” adding that it’s going to be a two-year cycle. He explained that since Bitcoin’s supply is going to be cut in half in 2020, the cycle for the currency is usually a year prior, to a year after. He stated that this two-year period would likely “get this big upswing, especially if more institutional investors enter the market. Kelly also claimed that Bitcoin will surpass its all-time high mark.
The post Bitcoin [BTC] will surpass its all-time high because of upcoming halving and institutional investors, says Brian Kelly appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin’s [BTC] cost of block production will eventually exceed its reward when it halves, says Daniel Larimer

Bitcoin [BTC], the largest cryptocurrency by market cap, continues to be one of the most controversial topics in the crypto-space. It is now in the headlines following the statements made by Daniel Larimer, the Co-founder of blockchain Steem and the CTO of Block.one.
The Co-founder spoke about Bitcoin having, a term that refers to the halving of Bitcoin mining reward after every 210,000 blocks are mined, on Twitter. The CTO stated that the cost of block production would be more than its reward after the halving.
Daniel Larimer said,
“As #bitcoin halves eventually the cost of block production will exceed rewards. Demand for transactions will be the sole driver for block production and bitcoin will become more decentralized… if only the difficulty could be bought down so hardware advantages are neutralized.”
The reward for mining each block was previously at 50 BTC. However, in line with the Nakamoto consensus, this reward would decrease by half roughly every four years, i.e., after 210,000 blocks are produced. The first halving event occurred in 2012, with the reward decreasing to 25 BTC per block produced.
The current reward is 12.5 BTC per block produced, with the cycle starting in 2016. The next halving is set to take place in 2020, following which the block reward would be cut to 6.25 BTC. This cycle will continue until all 21 million Bitcoins are mined, which is speculated to take place around 2140.
HotelCryptofornia, a Twitter user, said,
“From early as 2013, Bitcoin mining was already out of the reach of the common citizen with a PC left running overnight to further decentralize the network. Power over the network was concentrated as a result. It has gotten worse ever since and is almost unrecognizable now.”
Slipstream, another Twitter user, commented,
“What i foresee is a possible reduction in block time so more transactions go through as the reward tends to zero. Ultimately the network will have to run purely on tx fees and block times wont be as important as they are now.”
Notably, this was not the first time Larimer has taken potshots at Bitcoin. Previously, he had claimed that he could take down Bitcoin [BTC] and Ethereum [ETH] for “quite some while” with just three pool operators. He was criticized for the same on social media.
The post Bitcoin’s [BTC] cost of block production will eventually exceed its reward when it halves, says Daniel Larimer appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] Price Analysis: RSI Trendline Indicator Supports This Major Fundamental Analysis

Bitcoin breaks below the $4000 down mark, dragging the cryptocurrency market along with it. The total market capitalization of cryptocurrency markets also broke below the $140 billion mark.
The price of BTC at 5: 00 hours UTC on 26th March is $3965. It is trading 1.5% lower on the daily scale. Bitcoin has built strong support near $3850, a break from that could revive the bears of 2018.
Bitcoin Halving To Affect the Price?
The traders seem to be sending mixed signals. The ‘halving of Bitcoin,’ an event that will reduce the mining rewards by half occurs every four years. It was designed by Satoshi Nakamoto in such a miner to induce deflation in the system. As the mining reward is reduced to half, it is expected that the price of Bitcoin must increase to maintain parity between demand and supply.
Bitcoin halving event has occurred twice since 2009; First in Nov 2012 and the second in July 2016. The original miner reward was set at 50 BTC. The reward for mining a block currently is 12.5 BTC. The estimated halving date this time is 23 May 2020 post which the reward for mining a block will be reduced to 6.25.
Nevertheless, the price of Bitcoin during the second halving was $677. The price of Bitcoin is currently $3965. Hence, it has already risen five times its value since the previous halving but the difficulty has also increased considerably. We’re almost a year away from halving, and the miners are already at the brink of making a loss. Hence, to create a sustainable system, the price must compensate for the reduction in miner rewards.
The RSI Indicator
The RSI indicator is a momentum oscillator; The signal primarily oscillates between 70 (Over-bought) and 30 (Over-Sold). Bitcoin (RSI – 50) is currently neither in the over-bought region not in the over-sold territory. However, the long term RSI history of Bitcoin suggests that the bottoming is still a possibility.
If cue from history and Bitcoin is assumed to be in the accumulation zone, the RSI index during this period is expected to be towards the over-sold region before the beginning of a bull-season. Hence, assuming a long term bullish action, the price might see a further downtrend before towards over-sold region before the bull action really starts to take control.
Long Term RSI chart of BTC/USD ( Investing Scope from Trading View)
The long term optimism around Bitcoin deters the HODLER’s from changing their position. Moreover, the Hodling strategy has more often than not yielded stable returns. While the price seems to continues to consolidate around the $3900-$4000, the sideways action on Bitcoin could move either way.
The post Bitcoin [BTC] Price Analysis: RSI Trendline Indicator Supports This Major Fundamental Analysis appeared first on Coingape.
Source: CoinGape

A Look at Some of the Biggest Stories: Evergreen Issue of Cybersecurity

CoinSpeaker

A Look at Some of the Biggest Stories: Evergreen Issue of Cybersecurity

After covering a few of the different ways that crypto technology is getting absorbed into the more traditional sectors of finance last week, now we’d like to examine a few emerging features and techs that can impact the trajectory of crypto development.

A Look at Some of the Biggest Stories: Evergreen Issue of Cybersecurity

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin Block Reward Halving Could Trigger Price Surge, Predict Traders

CoinSpeaker

Bitcoin Block Reward Halving Could Trigger Price Surge, Predict Traders

The upcoming block reward halving event for the Bitcoin blockchain network is scheduled to take place in May 2020 and could possibly act a trigger for the Bitcoin price surge.

Bitcoin Block Reward Halving Could Trigger Price Surge, Predict Traders

Continue reading at Coinspeaker
Source: CoinSpeaker

Price Predictions of Bitcoin Become Rampant as Bitcoin Halving just 2 Years Away

As bitcoin halving is just two years away, a lot of price predictions have started appearing across discussion groups. In bitcoin’s short history the two previous halving have resulted in significant bull runs. With expectation being the same this time as well, a Redditor has uploaded a graphic which states Bitcoin could reach $1,000,000 dollars somewhere between 2020 and 2023.
2023 is the year when bitcoin touches new high according to the Redditor
A user named “btcph” posted on Reddit, a graphic whose trend lines state that Bitcoin could reach $1,000,000 dollars somewhere between 2020 and 2023. But the interesting thing is that after 2023 Bitcoin would reach $10,000,000 dollars. Whether that’s a realistic approach or not is yet to be seen, of course.
Halving is when there is a 50 percent reduction in block rewards on the Bitcoin blockchain, is only two years away. Unless there is an abnormal change in hashrate, the reward for successful Bitcoin miners will drop from 12.5 to 6.25 BTC per block in May 2020.
Hence as the post was published, the comments started flowing in as most users felt that these targets were too astronomical and looked unrealistic. a Reddit user known as grengrad commented:
“Bitcoin would equal the USD M1 Monetary Supply at $200,000 per coin. Bitcoin would equal the USD M2 Monetary Supply at $800,000 per coin. Bitcoin would equal the value of all assets on earth at $11,000,000 per coin. Bitcoin is not going to be worth $10,000,000 per coin in your lifetime. The network effect is NOT exponential, it is sigmoidal.”
Another Redditor named GabeNewell also commented saying
“If a real bull market returns, and we surpass $100,000 per coin… I don’t see an end in sight after that. The definition of Network effect is that the value of a network is exponential to the number of people in the network. In addition, the network grows exponentially. The important thing is that Bitcoin is an all-or-nothing scenario. We’re either going to hit equilibrium at <$300/coin or $10,000,000 per coin. Either Bitcoin works as a currency, or it doesn’t (and then is only used for crime). Bitcoin hit $20,000 on speculation. Imagine if we get enough people to have a real self-sustaining economy. That’s the gamble. Is Bitcoin going to actually show real-world use?”
Also, read: Bitcoin’s Great Start of September is over $7k, Where are Bulls Heading?
Getting to the history of halving
Bitcoin is less than a decade old. Thus, history might not paint a complete picture. However, historical patterns and trends are an excellent place to begin any price analysis. There have been two Bitcoin halvings: 2012 and 2016. Halvings occur every four years or after 210,000 blocks have been mined.
Both halving events have happened before significant bull runs. Whether the price rallies occurred as a consequence of the block reward reduction is unknown. A year after the 2012 halving, BTC price rose to $1,000 in November. At the time, it was the highest ever recorded price for the number one cryptocurrency. A year after the 2016 halving, Bitcoin also reached another record milestone. BTC price rallied to an all-time high of $19,500 in mid-December 2017.
The historical pattern shows Bitcoin prices booming one year after each previous halving. However, history doesn’t always paint a complete picture when it comes to the cryptocurrency market. Case in point, the anticipated Consensus price rally failed to happen this year even after many leading experts made bold predictions.
With the street already divided over what would be the price post halving, it is definite that for the price to go high and stay there, Bitcoin will need a definite use case. If the prices rise without Bitcoin having any fundamental growth, it would be only because of speculation and that rise would soon fizzle out.
Is halving of Bitcoin actually correlated to its price or is it just a passing event? Do let us know your views on the same.
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Source: CoinGape