Three Days to go for Bitcoin Halving, BTC Price Surges Above $10,000

As we are just three days away from the scheduled Bitcoin halving on May 11, the excitement among Bitcoin investors looks high. On Thursday, May 7, BTC price has finally climbed above $10,000 crossing this milestone for the first time since February 2020.

However, bitcoin has managed to only survive momentarily above $10K and has partially corrected since then. At press time, Bitcoin is trading at a price of $9910 with a market cap of $182 billion.

With this, Bitcoin has appreciated nearly 30% year-to-date which is phenomenal considering the ongoing global economic slowdown due to the Coronavirus pandemic. Moreover, Bitcoin has also managed to beat gold returns which stand around 12-13% year-to-date.

However, one must note that since the beginning of 2020, Bitcoin has been through massive cycles of volatility especially in the month of March. Bitcoin started the year of 2020 on a very god note appreciating over $10,000 levels just by mid-February.

However, with the Coronavirus outbreak all across the globe, Bitcoin and the overall cryptocurrency market collapsed in a month’s time. By mid-March 2020, the Bitcoin price tanked below $5000 levels sending jitters all across the investor community.

The good thing is that as the Bitcoin halving was approaching closer, the world’s largest cryptocurrency saw a massive buying interest again. Not to forget, the gloomy economic outlook added to Bitcoin glory. In the last 40 days, Bitcoin has yet again surged 100% from its 2020-lows and crossed $10,000 levels again.

Bitcoin halving is basically an integrated mechanism in the Bitcoin blockchain protocol that occurs every 210,000 blocks mined or roughly four years. Each Bitcoin halving reduces the miner rewards to half as the mathematical complexity of the algorithm increases as we move closer to the total supply 21 million mined Bitcoin tokens.

If we look into Bitcoin’s journey in the last four years, Bitcoin has given phenomenal returns to its investors. Since May 2016, the Bitcoin price has appreciated by nearly 2400% as on date.

By December 2017, i.e. just within 18 months from its last halving in May 2016, BTC appreciated from $400 levels all the way up to hitting its all-time-high of $20,000. However, Bitcoin has been subjected to several cycles of gloom and doom, but still continues to remain the most-preferred choice of crypto investors.

In fact, in the last four years, financial institutions have been showing more and more interest towards Bitcoin while developing several derivate products like Bitcoin Futures, options, custodial solutions, etc. Today, the institutional interest in Bitcoin remains at its all-time-high.

Some analysts have already predicted that Bitcoin can surpass its previous ATH by the end of 2020. Besides, the IMF has also predicted a worst global economic recession since the great depression. In this case, Bitcoin could possibly become the savior of the world by drawing more investors interest.