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Bitcoin Price Wavers Around $9,000 with 5 Days to Halving

May 6, 2020 at 12:43 by Matt Jackson

With just over five days left to the halving event, Bitcoin’s price has been wavering around the $9,000 mark but has reached new monthly highs, passing $9,300, at lunchtime trading. Analysts and investors only have just over five days to go until the Bitcoin halving event. Some investors remain adamant that the price will increase following the halving, pointing to the two previous events. In the year following the 2012 halvening, the price rose from $12 to $1,100 and peaked 11 months after the 2016 event, rising from $650 in July 2016 to $2,500 in May 2017.

Blockchain analysis firm, Glassnode, has reported that the number of unique addresses on the network has risen to its highest level since June 2019. This represents the total number of senders and receivers involved in transactions. A spike in this figure could signify existing investors increasing their holding before next week’s event. It could also indicate new investors looking to benefit from the well-publicized halving event and the price increases that have been touted. The number of unique addresses started to rise during the second week of March, shortly after the Coronavirus crash and when prices were at a low of $4,000.

Not all commentators believe the halving will have a positive effect on the price, however. Outspoken Bitcoin critic, Peter Schiff, has described the halvening as a consensus trade and warned that a consensus trade “usually doesn’t pan out as the crowd expects” before saying that it won’t be long before Bitcoin’s collapse. He said that “buyers have been front-running the halving for months” and because “demand will actually fall once it occurs” prices will go down while supply increases, albeit at a slower rate than before. He even predicted that the fading demand would lead to trouble for miners.

While most of the world spent April in lockdown, the same isn’t true of Bitcoin ATM installers. A net increase of 366 ATMs means that there is now more than 7,700 cryptocurrency ATMs around the world. The majority of the machines (5,749) are in the USA. Canada has 771 and the UK has 296.

Following Bitcoin’s Coronavirus led crash in the middle of March, when prices fell to $4,000, Bitcoin has rebounded, peaking at over $9,400 on April 30. Since then, prices fell sharply to $8,500 before steadying off and flitting above and below the $9,000 mark for the past week. The world’s largest cryptocurrency broke the $9,000 mark yesterday, reaching $9,050. The rest of the cryptocurrency market has followed a similar trajectory with Ethereum and Ripple posting gains of more than 2% and Bitcoin Cash gaining nearly 4%.

Market capitalization is also up, at $260 billion. The highest market capitalization total occurred in January 2018, when the market was worth a combined $840 billion so there is still a long way to go to reach these levels.

Bitcoin (BTC) price is up 4.01% and is now changing hands at $9,259.88 while Ethereum (ETH), the second-largest crypto by market capitalization, has risen by 2.18% to trade at $209.83. Ripple (XRP) has added 2.12% and now costs $0.221. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are both up, adding 3.86% and 1.1% to reach $252.57 and $208.79 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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