Arthur Vayloyan, the CEO of crypto-financial services giant Bitcoin Suisse, predicts that the May 2020 Bitcoin halving will act as a catalyst for a market wide crypto price rise. The CEO expressed an extremely positive outlook of the entire crypto market during a CNN interview stating that there is so much development and research happening in the background. Accordingly, these relentless efforts have been characteristic of the crypto industry and will be the key drivers of the cryptocurrency market.
He stated that since much of the work happens in the background it has become difficult to find its reflection in the cryptocurrencies price action. Nonetheless, he believes that these efforts are now compounding and soon their effects will be realized in the market through sustained price increases in the near future.
People sometimes think when they don’t see stellar price increases etc., that nothing happens. But so many things happen, and we’re going to see them also this year emerging. And with that interest and network expansion will just continue.
Vayloyan predicted that the upcoming Bitcoin halving in May will is the much needed catalyst that will kick in a series of events resulting in an industry-wide price rise. According to the CEO, there have been massive post-halving cryptocurrencies price rallies previously and he expects the pattern to recur in the upcoming halving.
2020 is one of those years where the halving takes place, roughly mid of May. And when you look back and take history as a little bit of a prediction, or at least an idea of what could happen, it so happens that price movements were actually quite positive in those years. Or in the year that followed.
Several crypto analysts are of a similar opinion predicting that there will be a pre-halving Bitcoin price rally that will accelerate after the event due to the lowered Bitcoin supply. Accordingly, this scarcity will have an effect on other cryptocurrencies prices since Bitcoin is the market mover and most paired token across all exchanges. This implies that the Bitcoin price rise will most likely trigger a market-wide price rally as it drags the rest of the cryptocurrency market upwards with it.
These sentiments were supported statistically on Twitter by Bitcoin advocate, Nunya Bizniz showing similar price actions from the past 2 halvings. Accordingly, there was a 50% price dip followed by an upward swing in the following 120 days prior to the first halving in 2012. There was an 88% price rise followed by a 30% crash in the 120 days before the second halving. Most importantly, there were huge price rises on both occasions post halving; as high as 2100% five months after the 2012 halving.
Currently, the crypto market and Bitcoin in particular is in the midst of a bull run that could be indicative of a pre-halving upswing similar to the previous events. This means that if history recurs then Vayloyan’s prediction could hold true in the coming months.
Image by Marco Verch from Flickr
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