Bitcoin Halving to Create “Tiny” Supply Shock
It is worth recognizing that the current situation to reduce Bitcoin’s profits can have two meanings. On the one hand, this has long been seen as a bullish trend, which will lead to a massive uptrend due to a sharp decline in inflation.
Also, there is an opinion that the reduction in supply as a result of this event will be very insignificant, and it is unlikely that this will directly lead to a tangible, albeit short-term, increase in the value of the cryptocurrency.
Bitcoin Halving Fast Approaches, But Its Supply Shock Will Be “Tiny”
So, the upcoming reduction in bitcoin mining rewards is expected to reduce the annual BTC inflation from current levels from 3.68% to 1.80%, which means a decrease of more than 50%, and is scheduled for May 12, 2020.
However, it is worth noting that, according to some influential investors, such an event in the digital currency market will not be the most important in 2020. With its undoubtedly optimistic nature, this short-term impact on the price of cryptocurrency is largely due to the reaction of investors to the event.
This is just a short-term, so-called shock proposal, but whether it will be so resonant as, for example, the expected leap in circumstances of geopolitical chaos.
Digital Gold Narrative Could Also Bolster BTC
Several influencer investors say that the digital gold story that encapsulated BTC over the past few months could prove itself to be another factor for the new wave of 2020 bullish trends.
In general, this behavior in a digital currency environment can serve as a good stratum for many investors to use the position as an excuse to enter new positions, which makes it a bullish self-fulfilling prophecy.