Article Hero

Future halving pushes Bitcoin over $10,000

1588930528.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Bitcoin passes the $10,000 milestone once again as halving approaches.

This event represents the halving of the rate at which the cryptocurrency gets released into the market. It happens approximately every four years after miners go through 210,000 blocks. It is essential for the cryptocurrency market because it slows down the demand, as the supply is finite. Only 21 million Bitcoins exist, with more than 18 million already in circulation. Just a little above 2 million is available for mining. Miners receive a reward for every mined block in the chain.  

Since 2009 when it all started, the reward got smaller and smaller. If in 2012 it was 50 BTC, this year's prize is 6.25 BTC per mined block. This type of event makes the price move. For example, in 2012, the price surged from $10 to $1,150. In 2016 the initial price was approximately $650, and after the halving took place on December 16, 2017, the price reached the historic max of $20,000. Although it dropped to $3,200, it was still bigger than the pre-halving price by a factor of 4. 

The Bitcoin price was over $10,000 during yesterday's trading session for the first time since February, just before the next week's halving. On February 24, it was above $10,000 before it reached a low of $4,000, a level unseen since March 2019. In just one day, it gained more than 6.4%. Since March the price went up by more than 150%. 

Ethereum, the next in line after Bitcoin by market capitalization, gained 3.8% in just one day. The overall value of the cryptocurrency market increased yesterday by more than $13 billion.

See the difference when trading with CAPEX.com by accessing elite features:  

  • Stellar custom service 
  • Powerful WebTrader platform and mobile app 
  • High-end integrated trading tools  
  • Full license and regulation from top regulators

Sources: marketwatch.com, cnbc.com, coindesk.com, investopedia.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.