September 28, 2022

After reducing emissions, the price of bitcoin will be $ 20,000 - 50,000

After reducing emissions, the price of bitcoin will be $ 20,000 - 50,000

Reducing rewards for adding blocks to the Bitcoin network in May 2020 may lead to a price increase cryptocurrencies in the range of $ 20,000 - 50,000. This is the opinion of Charles Hwang, a member of the board of the hedge fund Lightning Capital.

In a publication on Medium, he explains that withAssuming that demand remains at the level of 633,000 BTC in 2021 and at the same time the annual Bitcoin emission drops from the current 657,000 BTC to 328,500 BTC, the price of the cryptocurrency will increase several times relative to the current values.

“This momentary change in the supply curve is likely to be the catalyst for the next bullish rise.”- writes Hwang.

Lightning Capital - relatively smalla hedge fund with about $ 500,000 in assets under management. Hwang’s prediction is added to the forecast box of other analysts trying to assess the potential impact of halving on the behavior of the bitcoin market.

Earlier, some observers noted thatthe previous two halvings in 2012 and 2016 contributed to the growth of cryptocurrency, and the German bank BayernLB suggested that due to the next one, the price of bitcoin could rise to $ 90,000. Other analysts say that halving will not have a tangible effect on the exchange rate, as participants will be informed about this event. The market is known in advance.

Hwang said in a conversation with CoinDesk that he considers his assessment of demand conservative. He expects 82,000 BTC to be bought by market users on the darknet, and another 546,000 BTC to be bought by investors.

“Many argue that there is no demand for bitcoin. However, data from LocalBitcoins and darknet markets suggests that this is not the case. ”- he said.

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