The Bitcoin price movement has been positive over the past few weeks. After the Black Thursday crash in March, which saw massive losses of more than 60% in Bitcoin, the currency was able to recover almost back to its losses.
Over the past week, the world's largest cryptocurrency expanded XM Arabia From its gains, it managed to jump above the $9,000 level, but it failed to hold on to it and quickly dropped to the $8,500 level, and rebounded at the beginning of the week to the $8,800 level, and since then until now the consolidation moves dominate the trading.
Data revealed that Google searches for the bitcoin halving rose to an all-time high, and this may explain the large and sudden jump in the price of bitcoin over the past week, as it gained about $1,500 in two days at the end of last April.
The data showed that interest in the Bitcoin halving is now four times the level seen before the 2016 halving.
Bitcoin performance after halving, analysts believe
The third halving event is set to take place on May 12 amid a lot of interest from crypto investors to see what this could mean for Bitcoin. The prevailing view in the crypto market is that Bitcoin will take a strong upward trajectory following the halving event that will reduce the amount of new Bitcoin available for sale. This coincides with many governments in the world implementing wide monetary facilities and pumping more cash into the markets to support the global economy in response to the recession pressures from the Corona virus, which will increase the appetite for risk in the market and thus the rise in the price of Bitcoin.
Analysts believe that Bitcoin was developed in response to the global economic meltdown as a decentralized store of value, as the economic fallout from the pandemic provides an opportunity to test the safe haven theory of Bitcoin, and it is interesting to note that its price has risen by more than 35% over the past few weeks, as Bitcoin investors are taking positions before the halving If the bullish sentiment continues after the halving, Bitcoin is expected to jump higher.
Continuing economic uncertainty
At the most basic level, the halving event should reduce the supply of Bitcoin, and this will usually lead to an increase in price if demand remains flat or trended higher, but the Bitcoin halving event occurs in one of the worst periods in history in economic terms, the world is still It suffers from more infections and deaths from the Corona virus, which is accompanied by a global economic recession, which will create a state of uncertainty about the economy.
On the other hand, since the inception of Bitcoin in 2009 it has only gone through cycles of boom and bust but never a slump, and therefore there is no historical data with which we can predict what will go through the currency if the world witnesses a global economic meltdown.
The leading cryptocurrency abandoned its role as a safe haven after crossing the $ 10,000 level to quickly join the global risk assets, losing more than 40% from its gains during March 2020 as investors sold it en masse, coinciding with the similar moves of the S&P 500, and therefore if exposed The pressure on the US stock markets during the coming period will create a multiplier effect of selling Bitcoin.
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