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Bitcoin’s halving is approaching and There are numerous reasons why the cryptocurrency will hit $ 10,000 in the coming weeks., before the reward in mining activity is halved on May 10, 2020.
According to forecasts, the market is waiting for a significant Bitcoin valuation after halving. However, before halving, the price of the cryptocurrency It can also be appreciated thanks to these six reasons, let’s evaluate it:
1. The printing of money from the United States
The price of Bitcoin can also suffer reactions due to circumstances that are not part of the cryptocurrency market, such as the US dollar. The dollars printed by the United States to combat the economic crisis caused by the spread of the coronavirus.
In total, it will be $ 2 trillion printed to revive the US economy, which could go into recession. Tax incentives like this tend to boost Bitcoin’s price as a safe and limited reserve, in addition to affecting the liquidity of the US dollar.
While the US dollar can be issued unlimitedly, Bitcoin has a total issue of 21 million units that can never be changed.
2. Stablecoins also affect cryptocurrency
In recent years the price of Bitcoin has already had a great impact with the issuance of stablecoins in the market.. The entry of this type of tokens favors the price of the cryptocurrency, which can exceed $ 10,000 before halving in 2020.
This year, the issuance of stablecoins has made a significant leap in recent months. In addition to the new tokens that appear all the time, recently Some $ 1 billion has been issued that has entered the cryptocurrency market.
This issue may reverberate in a bullish wave of Bitcoin before May 10, when the main cryptocurrency halving occurs.
3. Increase your Google search for the term halving
Bitcoin issuance is dramatically reduced every four years to reward mining activity. In 2020, each block mined after halving will receive 6.25 (BTC) as a reward, compared to the 12.5 units that have been distributed across the network thus far.
The event is considered extremely important to the cryptocurrency, which has undergone two halvings since its inception. This importance is so great that the search for the term “halving” surpassed the search for Bitcoin on Google.
The search for Bitcoin and the event that reduces the reward in mining It shows that there is great interest in cryptocurrency before halving occurs.
Increasing Google search for Bitcoin, and even the term “halving,” can trigger a bullish wave that may end in values above $ 10,000.
4. The price continues above the simple moving average
The price of Bitcoin can reach $ 10,000 also thanks to the graphic analysis of the behavior of the cryptocurrency in the market. Among many indices there are moving averages, which are used as comparative price parameters.
The 50-day simple moving average (MMA 50) may present indications on how the price of Bitcoin should behave. Currently, the price of the cryptocurrency is around $ 7,000, which represents a value higher than this 50-day average, which is registering around $ 6,900.
These data can be translated as resistance with a strong uptrend. So this would be another compelling reason for Bitcoin to hit $ 10,000.
5. Oil “spilled”
Those who believed that oil was a safe asset had to review this concept with the recent decline of the commodity in the market. As we reported in Cointelegraph, the price of a barrel of oil was negative and fell bitterly 306% last Monday (20).
Historically, oil has never fallen as much as the last devaluation this week, showing that even markets deemed “reliable” can collapse. The weakening of the price may also favor the price of Bitcoin, as the mineral is traded through futures contracts which may cause a further crash in this market.
6. Mining demonstrates its power
Bitcoin miners are the sector of the cryptocurrency market that will be most affected by the halving that lies ahead. Mining activity will remain the same after halving, what will change is the value assigned as a reward for each extracted block.
Three weeks before halving and mining demonstrates sufficient robustness to withstand the event. The hash rate, which is capable of measuring the extraction power of the Bitcoin network, It has increased in recent days by 64% compared to March.
The increased hash rate may also be an indication of the upward trend in Bitcoin’s price. Reasons like this can cause the cryptocurrency to be valued at $ 10,000 before halving.
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