We are approaching the next big market rally as the 3rd Bitcoin (BTC) block reward halving is set to occur in about 14 days. As the economy is facing an ongoing hurdle due to an ongoing pandemic, will this on-coming event set a forecast that brings the digital asset to a new all-time high?
Just yesterday, there had been a report of a major crypto whale spotting by CoinMetrics.io on Twitter. Where a major Bitcoin holder moved 65,000 BTC after five years of hodling since April 2015.
Sources from Coingape.com stated that this movement of funds was held within the chain. The transfer was not to exchanges where there could be liquidations but to another personal Bitcoin address. There had not been any price movement within the Bitcoin market with its price safely at 7.7k.
Bitcoin Market Crash in the early 2020?
We could say that was the year for Bitcoin in 2019 (apart from 2017 where Bitcoin hit its all time high, 20,089 USD). As Bitcoin managed to take a turn from 3,391 to 13,796 USD. In the beginning of 2020, Bitcoin witnessed a sharp fall in value where the price of 1 BTC=$3600.
There were many speculation that this could be due to the on-going Covid19 which impacted the economy.
Recent news from Cointelegraph, explained the possible causes the Bitcoin price plunge, after a $1 billion liquidation in longs over a span of 8 hours. During this period, the American stock market experienced its worst sell-off since 1987 due to panic over the Covid19 pandemic. Which had deeply affected both the traditional and crypto markets. Not to mention major conflicts between Saudi Arabia and Russia with disputes over oil prices, with the current price of oil is less than 1 USD per barrel.
Total Bitcoin Supply
There is a total supply of 21,000,000 BTC and a current Circulating Supply of 18,350,475 BTC by information from Coinmarketcap. Although the anonymous father of Bitcoin Satoshi Nakamoto left the decentralized digital network on autorun, he is estimated to own more than 1 million BTC. There have also been many Bitcoin Major holders in the industry with famous investors like; Roger Ver who owns about $52 million BTC, Dave Carlson with about $35 million BTC, and Charlie Shrem with $45 million worth of BTC. Not forgetting some of the most renowned crypto exchanges like Upbit, Binance, and Huobi which is now to own about 1.4% of the total bitcoin supply.
There are currently less than 3 million bitcoins left to mine. Which indicates that after the mining of the last bitcoin, the total supply will be essentially tapped out, and the value of bitcoin will solely depend on its market demand just like Gold due to its scarcity.
With that said, this brings us down to find out, is the…
Bitcoin Movement crucial during this period?
Although the 68,000 BTC could not be compared to the amount owned by some of the key holders of Bitcoin, major crypto moves could affect the crypto market at any time. With the next having coming in two more weeks, mining rewards would be reduced by half, shaking off its weaker miners creating room for more efficiency and possible industrialization of the Bitcoin mining scene. This event will also indicate either an increase or decrease of Bitcoin demand proving its value as a digital asset.