Veröffentlicht: 02.05.2020

Bitcoin takes a breath

BTC takes speed out

Bitcoin consolidates just below the USD 9000 mark and the bulls take a break. However, the upcoming Halving Event creates a highly explosive constellation. In less than 10 days the crypto highlight of the year rises and the forecasts fluctuate more than ever. We take a look at the current market situation.

Bitcoin: Where is the journey heading?

The 2nd quarter is particularly well positioned for the No.1 crypto currency. Since 2015, Bitcoin has shown an average ROI (Return of Invest) of about 66% in the months April to June. In addition, the third Bitcoin Halving Event is moving ever further into the focus of investors. In just under 10 days the Mining Rewards are halved.

Halving in a few days

The Bitcoin Halving Event electrifies the crypto community. The event is an integral part of the ecosystem and implemented in the first block, the Genesis block. According to this, the reward for the miner after 210000 mined blocks is halved (approximately every 4 years) to keep the inflation rate of the crypto currency in check for the long term. This is the third halving in the history of Bitcoin after 2012 and 2016. The current reward for the miners is 12.5 Bitcoin per mined block and is reduced to 6.25 Bitcoin per block by the halving.

Further information about the Halving

There are currently 18,34 million BTCs in circulation, which means that more than 85 % of all BTC units have already been mined. Nevertheless, it will still take more than 100 years until the last Satoshi (BTC unit) is mined. The standard of 10 minutes per block remains unchanged even after halving. The Bitcoin Market Cap is currently valued at approximately USD 157 billion. This value corresponds to a BTC Dominance Index of 65.5 %. The current inflation rate of Bitcoin is 3.68 %. After the next halving it will fall to a value of approx. 1.8 %.

Bitcoin consolidated on Sunday

At the time of this article, the No.1 crypto currency is at a rate of 8907 USD. The bulls are taking a short break from the impressive attacks of the past days. The next resistance is at the 9000 USD mark. A sustained breach would open the door wide to the five-digit range. On the downside, the support line at $8800 represents the new base.

How dependent is the Bitcoin?

For weeks we have been observing an increasing correlation to the traditional markets. This comes in very handy for “digital gold”. The major stock indices are gradually recovering from the consequences of the coronavirus pandemic and the high volatility acts as a lever on the price development of Bitcoin. This raises the question of what would happen if Wall Street were to collapse again. It remains questionable whether the cops are prepared against such developments. The Halving Event brings the digital currency into the focus of the mainstream. A break through the USD 10000 mark could trigger a new hype and push the BTC further. A renewed collapse of the major stock markets and whale manipulation, among other things, speak against this.

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