Mati Greenspan: Bitcoin halving is fuelling price "surges"

29 May, 2019 | Updated: 29 May, 2019
by Will Heasman
Bitcoin
Mati Greenspan: Bitcoin halving is fuelling price surges

As Bitcoin edges ever higher, people have started asking one question: why? Some believe it’s the recent bullish developments from Bakkt and Fidelity, others believe in the idea of technical analysis and bullish cycles; but Mati Greenspan senior analyst for eToro, looks at Bitcoins supply, and how the market is preparing for the upcoming Bitcoin halving…

In one of Greenspan’s daily newsletters, the analyst attributes the recent surge in Bitcoin’s price to a shortage in BTC supply:

“The recent surges in Bitcoin are mainly based on the supply side. There’s already a shortage of Bitcoin in the world and with the halving event coming up next May, the countdown to even less supply has already begun,”

Indeed the halving countdown has begun, and many crypto aficionados are already gearing up to what many assume will provide yet another catalyst for BTC.

In the past Bitcoin has seen a major upswing in price proceeding a halving, for example, Bitcoins price one year before the first halving was $2.55, one year after it was $1037, Similarly, the price before the 2nd halving was $268, and after it stood at $2,525.

In essence, the less BTC being produced, the more valuable Bitcoin is thanks to reinvigorated scarcity.

Scarcity provides value thanks to the principle of supply and demand, a theory in which a limited supply of an asset, combined with high demand for it, results in an increase of the perceived worth of the asset, in some cases, even regardless of actual utility.

What do you think of this upcoming halving? Will we see an increase in BTC value? Let us know your thoughts in the comments below!

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