Cryptocurrency
Pre-Halving Rally: Bitcoin Just Bounced From Stock-to-Flow Baseline
As reported on NewsBTC, “Since the start of 2020, talk of the upcoming Bitcoin halving has caused the first-ever cryptocurrency and the rest of the crypto market to skyrocket out of control. “It’s only this past week where a pullback occurred, caused by coronavirus-related market-wide panic. But despite the selloff, Bitcoin remains bullish, bouncing off the stock-to-flow […]
As reported on NewsBTC, “Since the start of 2020, talk of the upcoming Bitcoin halving has caused the first-ever cryptocurrency and the rest of the crypto market to skyrocket out of control.
“It’s only this past week where a pullback occurred, caused by coronavirus-related market-wide panic. But despite the selloff, Bitcoin remains bullish, bouncing off the stock-to-flow baseline that suggests the asset’s value will rise exponentially after the halving this May.
“There are few narratives that surround Bitcoin that have as loud of an echo chamber as the upcoming halving scheduled for this coming May 2020.
“The crypto market has been anxiously awaiting the halving since the crypto market downtrend first began, as it is expected that the reduction in Bitcoin supply caused by the halving, will cause an imbalance of supply and demand that causes prices to surge.
“Each pre-coded halving reduces the block reward miners receive by half, hence the appropriate name of the event.
“Because much of Bitcoin’s value is based on its digital scarcity, the event is especially notable.
“It’s so notable, that a stock-to-flow model has been developed to track Bitcoin’s price progression based on that scarcity.
“This model is highly cited throughout the crypto industry and even in mainstream finance, and points to Bitcoin reaching prices of $55,000 following the halving…”