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The last bitcoin halving took place around the middle of 2020. Several months after, there has been increase in the price of Bitcoin. Is there a connection?
The Bitcoin halving likely had an impact on Bitcoin’s price. The Bitcoin halving happens every four years and cuts the number of coins miners receive for adding new blocks to the Bitcoin blockchain in half. The price of Bitcoin is above now a little above $29,000, having broken through the $20,000 milestone. It’s been a rapid rise since March, when Bitcoin drastically fell to its lowest point of the year, touching as low as $4,000. The coin has continued to bounce back and has fought its way above the $10,000 price point, going on to make new recent highs—and hit values not seen since Bitcoin’s epic 2017 bull run. Yet this time, an entirely different set of circumstances are accelerating Bitcoin’s price to new highs; such as PayPal.
Bitcoin’s price increase can also be attributed to its stock-to-flow ratio and deflation. Should Bitcoin continue on this trajectory as it has in the past, investors are looking at significant upside in both the near and long-term future. Theoretically, this price could rise to at least $100,000 sometime in 2021 based on the stock-to-flow.