Bitcoin was in a hot phase, market sentiment was optimistic like it had never been before with a halving. But as soon as the event took place, everything went flat. Why didn’t the value of Bitcoin grow as expected?
For weeks, we reported to the experts all signals that showed their Bitcoin investment models. In addition, several indices showed optimism about the Bitcoin halving event. All of this indicated that the value of BTC would increase. So far, however, it has remained strangely stable.
Sure, experts and indices have always warned that despite the fact that their models seemed irrefutable on paper, Bitcoin’s price is actually always doing what it wants. So it’s unpredictable.
Why didn’t the price go up as expected?
The answer to this question can be answered with another: Should the value of Bitcoin really increase?
Many experts still believe it. They argue two main reasons, one related to supply and demand, since mining half of Bitcoin is expected to increase demand for BTC.
The second reason is that at these prices, many crypto miners don’t have a profitable business. This will have a negative impact on the offer.
With fewer miners in the ecosystem, supply will continue to decrease and theoretically demand will continue to grow.
In short, although many experts are showing us this or that model of Japanese candles, crosses, and others, in short, these will be the two reasons that will hopefully carry the value of Bitcoin through the sky. So let’s break it down one by one.
Bitcoin’s value will increase because there will be fewer miners
There is something important that we need to point out. Most good analysts said that Bitcoin’s appreciation would not occur immediately. So we have to put our heads on ice, calm down and wait for the season of the “fat cows”.
The price increase due to the first hit of the offer is not generated immediately. Many of the world’s largest mining companies have months-long contracts for electricity, leases, personnel, etc. They also have the financial means to last for several months.
In return, many of them took the opportunity to mine as much as possible before Halving. For this reason, before the third halving of Bitcoin, we saw an increase to the historical level of the hash rate.
Therefore, the reduction in supply is not visible in this way for a few weeks.
Bitcoin’s value increases by half
The situation that has the greatest impact on the Bitcoin ecosystem is undoubtedly the halving. This is basically halving the reward miners receive for mining each BTC block. This is also the only way to create Bitcoin.
And although supply has been halved in the past few days, there is another factor that we must not forget, and this is demand. Based on the expectations of most crypto experts, the demand for cryptocurrencies will increase in the near future.
Either because of the impending economic crisis that the corona virus crisis has brought with it. Or because of the lack of trust of many in the traditional system. Or because the panic over rising global inflation is becoming more real thanks to the pressure on inorganic money from many world banks around the world.
Why didn’t the value of Bitcoin grow as expected? Then we could answer, because the time has not yet come.