The Bitcoin halving that occurred on May 11 was one of the most widely anticipated events of 2020. Several analysts even went to the extent of live streaming the countdown to the event.
The BTC halving was trending in twitter as enthusiasts continued to drool over the expectation of BTC reaching $15,000. However, BTC is afar from these expectations.
Bitcoin technical snapshot since the halving
The BTCUSD four-hour timeframe shows that the first candlestick post the halving opened at $8,515. It was a green candle, suggesting that the price moved higher. Several investors were bullish at that moment.
However, Bitcoin’s halving was overshadowed by the devastating effects of the Coronavirus. Investors became fearful. They started cashing out that led to a decline in BTCUSD.
BTC recovered soon after, and it kept on rising for 16 trading sessions. On May 15, BTC formed a high of $9,870. It followed with the formation of a sine curve of upswings and downswings.
BTC found a key pivot line, which is also marked in the chart. At the current prices, BTC rose more than 12% since its halving. However, it is in a consolidation stage now.
Pros and cons of mass adoption of Bitcoin
Let’s start with the pros first:
- The Coronavirus pandemic brought the economy to a standstill. Factories got shut down, and millions of people all over the world lost their jobs. Central banks resorted to printing money at never-seen-before speeds. The US Federal Reserve is printing $125 billion every day.
- It causes the value of money to fall drastically in the long term. It is where commodities such as Gold, Silver, and cryptocurrencies such as Bitcoin become valuable. As fiat loses value, these assets become more expensive.
Bitcoin has its share of cons as well:
- Bitcoin is highly volatile. And with negligible commercial usage and BTC whales on the prowl, there is no surety where the price might go. It could reduce to something close to zero drastically.
- Dark web activities are exponentially challenging to track if transactions are done via Bitcoin.