Bitcoin halving is less than 7 days away, will it surge?

Bitcoin halving is less than 7 days away, will it surge?

The highly anticipated Bitcoin halving event is less than a week away now. With markets still range-bound, the likelihood of a big price pump is diminishing.

The Bitcoin halving is fast approaching with less than seven days away, the crypto industry is about to witness one of its most awaited event of the year.

Bitcoin halving countdown

 

Many were expecting a pre-halving pump but, similar to the previous years, it has not materialized.

The halving will do a number of things to the Bitcoin network. First, it will reduce the block reward that miners get which has the effect of reducing issuance and inflation.

This helps create a predictable monetary supply while reducing debasement by inflation which is exactly what is happening to the US dollar.

If history rhymes, the months following the halving are likely to remain flat or even in decline in terms of the BTC price. The past two events have only resulted in large bull markets in the years following the halving, specifically in 2012 and 2016.

If pricing models like stock-to-flow are to be believed, then all will be good in 2021 when Bitcoin is set to make a new all-time high. However, there could be more pain to experience first before acquiring those gains.

Image courtesy of Pixabay/Pexels

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.