Bitcoin (BTC) is presently trading at $15,374, up from the prior day’s low of $14,310, gaining nearly 5% on the day.
In May 2020, Bitcoin had its 3rd halving event. The prior halving was recorded in 2016 as this event takes place every four years. From historical cycles, in 2017, Bitcoin attained its all-time highs 15 months after the 2016 halving. Therefore counting 15 months from the latest May halving will imply that the chances of a new peak in mid-2021 remain high.
Meanwhile, analysts expect the BTC rally to extend into early 2021, expecting BTC to enter price discovery and hit new all-time highs. In the long term, cryptocurrency investors and analysts say the perception of Bitcoin as a durable store of value would push its valuation.
Tyler Reynolds said the fixed supply of Bitcoin makes it compelling as a hedge against government spending. This he said:
“As it’s currently shaping up, the next bull run will be led by BTC with the very narrative that OGs have been saying since 2011: Bitcoin’s hard supply cap makes it a durable SoV as governments devalue their fiat currencies to support unconstrained government spending.”
Macro investor and fund manager Paul Tudor Jones and other prominent investors call Bitcoin ‘an ideal inflation play’.
In terms of regulation, Jake Chervinsky of Compound Finance stated that the US President-elect, Joe Biden has not expressed any public stance towards crypto. This he said:
“President-elect Biden hasn’t said anything publicly about his views on crypto. For now, it isn’t a big enough issue to warrant his attention. The next four years of US crypto policy depends on who he appoints to key positions; we’ll know more as the transition gets going.”
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