For the vast majority of crypto market analysts, a new bullish Bitcoin rally is inevitable. After the third Halving of the cryptomarket, the main crypto influencers expect a repetition of the pattern experienced after the second Halving. Which brought the price of BTC to around $20,000. However, what would happen if instead of increasing the price of Bitcoin it remains at $10,000?
Kraken Intelligence tells us what will happen after the Halving of Bitcoin
Within the crypto community it has become a common belief that the price of Bitcoin will increase in the short term. And this makes sense, considering that the third Halving in the BTC Blockchain occurred recently. It reduced the size of the miners‘ rewards in the chain by half. Which represents a drop in the rate of increase of the currency supply.
This, according to the law of supply and demand that governs the markets, should generate a substantial increase in the price of Bitcoin. Thus, a fall in the supply of BTC, while demand remains stable or even increases, should lead to its price skyrocketing.
Which would coincide with what happened in 2017 after Bitcoin’s second Halving. When the slowdown in Bitcoin’s monetary issue led to the price of the cryptoactive nearing $20,000 per BTC. In what has been the largest increase in its price so far.
However, despite hopes for this event, a month after Bitcoin’s Halving, the long-awaited price increase has not been seen. On the contrary, the market has lateralized around $10,000 per BTC. In a situation of stagnation that has already lasted several weeks.
Vitalik Buterin does not believe that Bitcoin should increase because of Halving
What if the price of Bitcoin stagnates?
Now, for many market analysts, this stagnant situation would simply be a temporary distortion. A preparation of market forces before a new big rally of the currency. But what if this rally never comes?
Because we must be aware that Bitcoin’s goal is not to constantly increase its price to generate multi-million dollar profits for its owners. Since its birth, BTC aims to become an alternative to traditional Fiat money. This means that it seeks to become a currency for buying and selling goods and services around the world.
A goal that could not be achieved if its Cryptosoft price continues to maintain a dynamic as volatile as it has been until now. Well, price stability is one of the main characteristics that consumers look for in their money. According to Vitalik Buterin, there is no force that would indicate that Bitcoin should increase its price on a mandatory basis after Halving.