The Bitcoin halving event is now less than two weeks away. The halving event has had a profound effect on the bitcoin price in the past. Crypto analysts are once again expecting that another rally is about to happen and that this bull run could dominate anything that we have seen before.
On the other hand, some believe that the halving event may not have as big of an impact on the price fluctuations of bitcoin.
We all witnessed Bitcoin reaching a relative high of $8,900 back in March and maintaining its stability by staying above $7,500 for two weeks. But is the excitement too much?
Micheal van de Poppe, the crypto analyst said that Bitcoin won’t be able to maintain its relatively high price and go above the $8,000 or $8,500 mark.
How the Bitcoin halving event will affect the Crypto market
Crypto Fear and Greed Index, which measures the uncertainty within the crypto market may decrease. The halving event may increase the Bitcoin price but we may see the greed index go the negative way.
Matthew Ficke, the head of crypto exchange platform OKCoin compared the halving event with the Crypto Fear and Greed Index saying that there is no genuine reason to believe the greed index will wobble due to the halving. The reason could also be the plummeting market caused by the coronavirus pandemic.
Halving means the reward for mining new blocks is halved. How will this affect the hash rate?
The hash rate will fall immediately after the halving event as the bitcoin miners will go offline due to their reward being cut in half and it will cost them a lot to continue mining new blocks.
But the decrease in hash rate is a short term problem. Tim Rainey, the chief financial officer of Greenidge Generation said that they have business plans and have the latest generation mining hardware.
Also keeping in mind that in the past bitcoin maintained its dominance in the cryptocurrency world, the hash rate will most likely increase throughout the year.
Is the excitement really too much?
All the Bitcoin traders and holders are waiting anxiously for the halving event. The expectations are too high and why would it not be? With the pandemic on the rise and the fluctuation of bitcoin price, the excitement is obvious.