What happens when a lot of people talk about possible Bitcoin price movement? Right – the price indeed starts moving. And now BTC seems to be gaining momentum ahead of May’s halving event.
Some experts start predicting the next price move. They see a dramatic scenario of Bitcoin price rushing up to $18,000 and even $20,000 in the short-term and up to $100,000 in the long-term. Such data is based on calculations of previous price action. It appears that Bitcoin can gain up to 80% in profits during a year after halving occur.
Since the start of the year, BTC already gained 40% in pure profits. Some may think this is only the head of the possible profit iceberg. The Arcane Research claims a 6% probability that Bitcoin will set the new record by the middle of 2020. By the end of Summer, the main cryptocurrency could hit the $20,000 record with a 10% probability.
During the days, traders buy more Bitcoin ahead of the halving. Previously, Bitcoin halving made the price go up and down after the halving. This time, the after-halving correction may mean the best opportunity to join the holding game for the long-term.
Bitcoin Halving to Trigger Double Cost Increase?
Research analysts from German real estate investment firm BayernLB think that Bitcoin could hit $90,000 till the end of the year. They are using examples such as the Canadian gold rush and its tock to flow ratio to explain mining psychology and reasons standing behind people who admire rareness.
Analysts from the TradeBlock claim that the average cost of mining will increase two-fold because of the change in mining profitability. Currently, miners are spending $5000-8000 to produce one bitcoin. After the halving, they will approximately have to waste around $12,500 to produce the same virtual coin.
In the calculations, TradeBlock is using Bitcoin’s current network hash rate. However, it may increase or decrease over time, making it easier or harder to solve the system’s math puzzle. The data presume that the average miner pays 6 cents per kW/h, but some large mining companies claim they have inked agreements to receive electricity at only 2 cents per kW/h.
John Todaro, from TheBlock’s research department, says that getting inside the miner’s head is essential in Bitcoin price prediction mastery:
“It’s very helpful to know what the miners are thinking, what the miners are doing. There might be some miners that are profitable at those levels, but not a lot of miners are going to be operating at a loss, and they might take their rigs offline.”
Mike Novogratz Claims Bitcoin is ‘Best Brand’ of the Last 11 Years
The famous venture capitalist Mike Novogratz says that Bitcoin could hit $20,000 even before the May 2020 halving. During his interview with CNBC on February 14, Mike claims:
“We might be there literally by the halving, which is in a couple of months.”
Despite Novogratz had lost significant amounts of value in ICO related ventures, he admits that the altcoin market has weight. Mike identifies Bitcoin as the coin with its unique pathway, which is – to be the Digital Gold of our age:
“Because people have believed that it’s now a store of value — similar to gold, just gold’s got 3,000 years and $10 trillion, Bitcoin’s got eleven years and $200 billion… Bitcoin is probably the best new brand of the past eleven years — a $200 billion market cap for a line of code that came out eleven years ago.”
Back in December, Novogratz already set out his forecast of Bitcoin gaining at least $12,000 at some moment in 2020.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.