Just a few days ago, bitcoin’s price dropped below $4800 but it has recently increased in price as it crossed the $5000 mark again. Since then it has struggled to make any significant increase in value.
This price plunge has made the whole crypto-currency market to collapse. Some think though that the crypto-currency market will not continue bearish. A bitcoin trend chart that’s now in circulation reveals a remarkable correlation between the price trends today and the years leading up to the previous block reward halving.
Redditor u/jayjay16022 posted the chart to r/Crypto-currency recently.
Bitcoin Price Recovery
NB: If the chart didnt show up please click on this link.
The data chart above shows bitcoin’s price trend from the year 2013 to its halving in July 2016 and compares it with the price trend from 2017 till date. As you can see from the graph they are almost identical.
This is actually very significant because it was at this point four years ago that Bitcoin began to gain value.
Many analysts have been quick to blame bitcoin’s price drop on the recent corona-virus outbreak but truth be told, crypto-currency markets have always been extremely volatile and major price swings are the norms.
What’s The Way Forward?
All we can do now is hope that bitcoin increases in value again as it did in recent years. Its important to note that analysts are beginning to agree that the halving in the month of May will be significant.
By reducing the block reward to 6.25 BTC, supply will decrease and demand will increase putting upward pressure on the price. bitcoin has had two previous reward halving, and after each the price moved up significantly.
Alot has happened in the crypto space since the last bitcoin halving. The blockchain technology is vastly more developed than was the case in 2016. Many altcoin platforms have emerged that now have significant potential to achieve mass use. Bitcoin still remains the major crypto-currency. It surely has and will endure even more challenges in the future.
While it remains too early to determine if bitcoin’s price will continue to fall long-term asset holding and prudent action still remain the best investment strategy.
There is ample data that suggest that crypto-currency markets will eventually recover, so lets just keep our fingers crossed.
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