CEO of Binance.US Catherine Coley (Catherine Coley) believes that the upcoming halving of the reward for miners will contribute to a gradual increase in the bitcoin exchange rate.
The entire cryptocurrency community is waiting for the may halving of the reward for bitcoin miners, as a result of which the reward for block mining will be reduced from 12.5 BTC to 6.25 BTC. This halving will be the third in the history of the first cryptocurrency.
Traders are wondering whether to expect a sharp increase in the bitcoin exchange rate in the short term, or after halving the price of the first cryptocurrency will increase gradually. CEO of Binance.US Catherine Cowley believes that the upcoming halving is a “significant event”, but its consequences may not be immediately apparent in the market.
“Halving either will not entail any changes, or will contribute to a long transition to a bullish rally. Remember how it was in 2016 – after halving, there was no immediate reaction on the market, but 18 months later, bitcoin reached its maximum mark. The event itself may not be as impressive as its consequences. The increase in the bitcoin exchange rate may be affected by the complexity of its production and the increased interest of people. It all depends on supply and demand, ” Cawley said.
She also added that the number of search queries about the upcoming halving of the reward for miners has significantly increased over the past few weeks, which can cause a huge influx of new traders to the cryptocurrency market. Cawley cited the example of the second halving of bitcoin, held in July 2016, in which the reward for block mining decreased from 25 BTC to 12.5 BTC, but its impact on the rate of the first cryptocurrency was insignificant.
CEO of Binance.It also affected the “coronavirus” factor. Even when the whole world is in quarantine, and the crisis has affected developed and developing countries, people wonder: “Will they be able to survive on bitcoin when the market is a complete mess?» This indicates a growing interest in the first cryptocurrency, as people have high hopes for it.
Cowley suggested not to consider the short-term or long-term prospects of the upcoming halving of the reward for mining, but to analyze how far the cryptocurrency market has advanced after the second halving of bitcoin. In her opinion, the market has become quite Mature, with good liquidity, derivatives markets have appeared, and the may halving will be the next stage of its development.
The co-founder of Bitman, Jihan Wu, holds a similar position. In his opinion, halving the block reward will minimally affect the bitcoin exchange rate, so you should not expect its sharp growth. Note that over the past 24 hours, the rate of the first cryptocurrency has increased by 19% and exceeded the $9,400 mark.