Bitcoin surges towards $8,000 after almost 20 days of trading sideways. Bitcoin held strong during oil’s dramatic crash early last week, it seems like the market is feeling confident and bullish.
According to Bloomberg, Bitcoin rose as much as 9.1% on last Thursday surpassing $7,500 for the first time since the price tumbled 27% on March 12th. The crash parallels the decline in global markets following widening effects from the Coronavirus. Furthermore, technical indicators suggest Bitcoin needs to break above $8,000 to start a higher run. Bitcoin’s price currently sits at $7,740 as of writing this.
In 15 days the mining rewards for Bitcoin will drop by 50% from 12.5 BTC per Block to 6.25 BTC per Block. From a production standpoint, this will make Bitcoin as scarce as gold.
Scarcity has long been a pillar of Bitcoin’s value proposition, and halvings have historically been a big driving factor for price. In 2012 when Bitcoin first halved with mining rewards reduced from 50 to 25 BTC per Block, the price shot up from $12.25 by a factor of 16 by 2013. In 2016 when mining rewards dropped to 12.5 BTC per Block, the price skyrocketed by a factor of 30 times to it’s all time high in 2017.
The next few weeks should be exciting times for Bitcoin and Cryptocurrencies. It is still too early to tell whether or not Bitcoin is ready to reach $8,000. However, by and large the market is looking bullish. This drastic breakout in price is just what the market needs to get the pre-halving pump started.