Block halving only occurs every four years. The third bitcoin halving will take place in May 2020, But is this event already included in the price? Twitter personality The Crypto Dog recently asked the community to intervene.
“Do you think the halving is already included in the price?” The trader asked the cryptocurrency community in a Tweet April 22.
This time is different
Every four years, the Bitcoin code prescribes a weird 50% reward bar. In May, Bitcoin’s mining premium fell from 12.5 BTC to 6.25 BTC per block. In theory, this leads to a deflationary event. The potential for this result was the subject of a discussion significant in recent months.
Bitcoin is more mainstream today than ever. The asset is also entering new waters in an economically difficult time due to the coronavirus pandemic. Lots Attendees from industry have discussed whether the current price of Bitcoin already reflects the effect of the next event.
The public has mixed feelings, but some see a delayed response
Waiting for a price reaction a few months later, driven by a bullish crypto market, a user According to Twitter, bitcoin halving is never included in the price before it occurs. Other User said he believed the event in Bitcoin’s price will be negligible in the short termand reiterated his desire to see how things work over the next four years.
Another Twitter member too suggested a price increase for Bitcoin, but only years later, as was the case with previous halving. He postulated that the current sentiment that the price of Bitcoin will rise shortly after halving is a fallacy.
The tweet received 631 responses at the time of going to press, showing mixed feelings about the upcoming Bitcoin event.
A separate Cointelegraph article showed data on the last two Bitcoin bisections. Although the results regarding an immediate price reaction at the time of the halving were inconsistent, the years after the event led to significant price gains.