Despite a Dull Halving, the Price of Bitcoin’s Continues to Make Gains

In the aftermath of what turned out to be a somewhat uninteresting and dull halving event, Bitcoin prices are making gains. With daily active Bitcoin addresses at the highest level in two years, interest in the cryptocurrency may be heading higher.

Bitcoin is currently trading above its 10-day and 60-day moving averages. This reversal in price comes on the heels of a massive drop of 10 percent on May 10. This price drop led to bearish sentiment in advance of the halving. The halving occurred at 3:23 pm Eastern Time on May 11. As a result of the halving, miners receive 6.25 Bitcoin’s rather than the previous 12.5. The May 11 halving was the third. The next halving is scheduled to take place in 2024. At that time, the number of new Bitcoin’s issued will once again be reduced by half.

The Halving Turned out to Be a Non-event

The majority of traders saw the halving as a non-event. However, traders are keeping a keen-eye on statistics that go beyond price alone. Active Bitcoin addresses are being carefully watched. The active addresses on the day of the halving totaled 943, 869. According to data provided by Glassnode, this number is the highest since late January 2018. This was right in the heart of the 2017-18 bubble, which saw prices as high as $19,915.

Some people who began to watch Bitcoin due to its halving may be tempted to hang around if the price should increase. The surge in Bitcoin prices in 2017 brought the cryptocurrency into the wider consciousness. The May 11 halving could spawn “a new wave of investors who are not knowledgeable in computer science or technology,” according to Simon Peters, an analyst at brokerage eToro.

Will Bitcoin Prices Reach a New All-time High?

In the few weeks leading up to the halving event, Bitcoin prices surged from a low of about $4,100 to a high of almost $10,000. With the halving event now history, the price has fallen back to about $8,700.

What is next for Bitcoin? Several experts suggest the price could go much higher, even higher than the all-time high in late 2017. Experts expect demand for Bitcoin to increase as it is perceived to be far safer than paper backed currency during this time of the COVID-19 pandemic.

Zac Prince, CEO of BlockFi, believes Bitcoin prices will soar past $20,000, perhaps flirting with $100,000 within the next two years. Paul Tudor Jones, a legendary hedge fund manager, has been talking up Bitcoin as a potential hedge against inflation, inflation that may come about due to massive central bank stimuli. 

Investors in Bitcoin and other cryptocurrencies point to the fact that prices increased dramatically in the first few months after the halving of 2012 and again in 2016. Investors believe the same thing could happen after the recent halving, especially when the unprecedented events that are happening in the global economy are considered.