The supply of Bitcoin is only more than 3 months away from being halved and major market commentators claim the halving event will drive up the price.

In a tweet on February 1, Weiss Crypto Ratings summarized Bitcoin price performance in the previous two halving of block rewards.

Weiss: Halving “Sure” support BTC price

Halving is related to the number of new Bitcoin given to miners on each block they confirm.

In the first event at the end of November 2012, BTC / USD traded at just $ 12. Four years later, the supply halved to only 12.5 BTC per block and the price was $ 652.

With Bitcoin rising more than 30% in just January to reach $ 9,450, expectations are now higher than ever and halving in May 2020 will produce price action closer to $ 12,000 compared to $ 12. .

“DThis is how halving Bitcoin has impacted the market. So, does this event help drive prices higher? Sure. The only question now is how high will BTC be during this period? ”.

Bitcoin is set to beat gold, the Fed inflation rate

The effect of halving in 2016 has been somewhat delayed. During the event, Bitcoin only reached an all-time high of $ 20,000 in the bull run a year later.

Similarly, some analysts expect prices to not rise as soon as the reward drops to 6.25 BTC.

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However, other statistics show that 2020 will be an even more successful year for Bitcoin. For example, in terms of inflation, halving will reduce Bitcoin's rate to be lower than both gold and the Federal Reserve's target level for the US economy.

By 2021, following a historical accurate price model that reflects the effectiveness of Bitcoin halving, BTC / USD will reach an all-time high of $ 100,000.

BTC price today | Source: Coinmarketcap

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

Bitcoin Magazine | Cointelegraph

• Updated news at Telegram

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