Skip to content

Bitcoin’s recent surge: Reminder of the 2017 Bull Run or Just Manipulation?

Bitcoin upsurge is reminding some people of the bull run of 2017. Upcoming halvening event is also being cited as one of the
Bitcoin upsurge is reminding some people of the bull run of 2017. Upcoming halvening event is also being cited as one of the reasons for bitcoin’s bull run.

The recent bull run of the leading cryptocurrency is reminiscent of the bullish run of 2017 when the price of bitcoin (BTC) reached its all-time high of $20,000. Several BTC traders and analysts have cited the upcoming halvening event as one of the reasons for the leading cryptocurrency’s bull run. The bitcoin halvening event is scheduled to take place on May 12th, after which the mining reward would be reduced in half.

Recent stimulus packages announced by central banks have also played a role in bitcoin’s surge.

Currently, the global economy is in shambles because of the ongoing pandemic and central banks around the world have announced several stimulus packages to help revive the company. These actions by central banks have also played a role in the upsurge of bitcoin’s price. Global Macro Investor’s Raoul Pal has predicted that the price of BTC could reach $1 million in the next three- to five years. Though the halving isn’t the main reason behind his prediction, it could be a potential accelerant.

How would the halvening event affect the BTC price?

Bitcoin halvening occurs every four years, which reduced the mining reward by half. This process reduces the speed at which new tokens are created. This would be the third time that bitcoin would undergo such an event. In the past, each halvening event is followed by a surge in the price of bitcoin. The worlds’ leading cryptocurrency rose from $12 to over $1,000 in the year following its 2012 halvening event and advanced about 1,000% after the 2016 halvening event. If history repeats itself, then the price of bitcoin following halvening could witness a massive surge. However, during the 2012 halvening event, bitcoin’s name was still spreading, which attracted a lot of new investors to the market, however, the current situation can not be termed as the exact same.

BTCUSD Price Chart
BTCUSD Price Chart

Currently, the leading cryptocurrency, bitcoin, is changing hands at just above $9,000 mark, with over 16% up in the last week. However, some BTC whales and analysts have deemed the recent bull run as fake and claimed that big players are playing small traders using the halvening narration.

Latest