I remember the 2016 Bitcoin Halving…. May 2020 is going to shock us all.
There are a lot of differences between Bitcoin in 2016 and Bitcoin in 2019 and I believe these changes are going to dramatically impact the next halving event. It is no surprise now that the May 2020 Bitcoin Halving is going to cause FOMO for investors. I also believe that the market has become so sophisticated that this Halving is already accounted for in the current PRICE of Bitcoin.
As we are all well aware of, the media has a massive role in dictating the direction of the market, and I believe we are going to see another dip below $3500 before another period of stagnation leading into the Halving in May 2020.
May of 2020 will be huge for a number of reasons, first and foremost the block reward for Bitcoin miners will be cut in half. Secondly the largest and most successful Cryptocurrency event takes place in NYC during May and this has generally caused a lot of buzz in the price and energy in Crypto. Consensus — May 2020 will be positioned greatly to focus on the Bitcoin Halving event.
Let’s discuss retail investors for a moment. In 2015 and 2016 the easiest way to buy and sell crypto — mainly Bitcoin was on Coinbase. Things have dramatically changed since then. Let’s review all the HUGE progress we have made since 2016:
- Fidelity introducing custody and Crypto products.
- Bitcoin Futures products.
- More services for Shorts, Longs, derivatives, options. ( Bitmex, Kraken, Bitmax, LedgerX)
- Many more user friendly apps to buy Bitcoin with Cash! ( ABRA, CIRCLE, METALPAY, CASH APP, ROBIN HOOD)
- Institutional involvement- Morgan Creek Capital, Ikigai, JP Morgan Chase, Fidelity, Bitgo, Ledger, BAKKT.
- Belief that Bitcoin ETF will be approved after many rejections!
With all this new infrastructure and increased attention I suspect that the price run on Bitcoin will be greater than we have ever seen before. Many are speculating price points of $50K — $150K. We shall see, we have to remember the $10,000 dollar Bitcoin calls of 2015 and 2016 seemed just as crazy. The on ramps are built for an epic run in 2020/2021.
Historical Bitcoin Price Performances around Halving Events | Source: Greyscale Investments
BILL GUIDA is Head of Research at Bull Flag Group. Passionate about results, education and constant improvement.An empathetic leader with management and analytical mindset. He enjoys helping clients and students become passionate about Cryptocurrencies and gain valuable technical knowledge.