Bitcoin survived its third halving, but the market reacted weakly
Last night at block 630 000 bitcoin miners’ reward has once again decreased by 50%, from 12.5 to 6.25 BTC. However, the market reacted poorly to the most anticipated event of 2020..
Ended the third halving in the history of bitcoin, and the next reduction will take place only in 4 years. The first block with new reward conditions was mined by the F2Pool mining pool. It contained 3134 transactions for which users paid a commission of 0.90968084 BTC.
Immediately after halving bulls tried to stimulate the growth of the bitcoin rate, but after a short increase from $ 8650 to $ 9000, the price returned to its previous level. At the time of publication of the PTS traded at $ 8740. In the short term, the main consequence, according to analysts, will be increased market volatility, which, depending on investor sentiment, could lead to a breakout above $ 10. 055, or to a gradual decline, up to $ 7300.
According to Yuri Mazur, head of data analysis at CEX.IO Broker, was hampered by the fact that the day before the halving, the whales brought down the price of the coin, selling a huge amount of bitcoins. The second reason lies in the general situation on the market, and despite the fact that the position of the world economy is gradually stabilizing, it is too early to talk about a way out of the crisis..
"Many investors, including institutional ones, hoped that at the time the currency markets fell, bitcoin would become a defensive asset, but this did not happen. Markets are still in a quandary and the crypto market is no different", – expert says.
Currently, the hashrate of the first cryptocurrency has decreased only slightly, which indicates attempts by miners adapt to changes and work in new conditions. However, further indicators of total capacity will depend on the market situation in the next couple of weeks and the profitability of the equipment used..
The two previous halvings ultimately had a positive impact on the MTC rate, and after a short-term destabilization of the market amid speculation, its value increased. At the same time, Yuri Mazur notes that according to the study by Messari, past events do not guarantee a repeat of the script, so the 2020 halving is not will become as significant as the previous two.
text: Ivan Malichenko, photo: bcademy, charts: TradingView, Blockchain.com