Bitcoin’s halving in 2020 is just around the corner, and this has given rise to various narratives in terms of its price movement following the event. But halving might not have a dramatic impact on its price. Many industry influencers have speculated on the impact the halving could have: will it follow Litecoin’s path?
“My feeling is that the upcoming halving event is not priced in at the moment. My best guess around the bearish action in the second half of 2019 is due to an ongoing war among crypto miners. There have been a round of new technology coming out in the last few months that makes the old mining rigs obsolete. Therefore, the miners that were stashing their Bitcoin in the bull run have now sold some off in order to upgrade their equipment.”
“for the first time, there is a robust derivatives [futures, options] market for bitcoin. most firms looking to speculate on bitcoin will trade a derivative, not the underlying.”
There has been significant growth in Bitcoin and the crypto derivatives market. And this could, in fact, change the trajectory and hinder the profitability factor for the miners. The exec of the digital asset management firm opined that when the derivative sector “take off”, the producers [miners] “lose the right to set prices”. The price of the Bitcoin would “decouple from its value, supply and demand”, the more it becomes an “investable asset”, Demirors cited.