The long-awaited halving event is so close. As of the latest block, we are 99% of the way there.
The halving event is the most anticipated event in the cryptocurrency world. Bitcoin will then be twice as scarce amid a world where fiat currency is being printed at records never seen before.
Almost to the Finish Line
Bitcoin Block Bot (@BTCBlockBot) had a fun announcement to make recently. As of block 627,900, we are 99% of the way through until Bitcoin’s halving event. As of now, the halving is expected to take place on May 12.
However, there has been much debate over how the price of Bitcoin will respond to its halving this time around. Strangely enough, Bitcoin’s RSI has never been this weak before a halving event. This has led some to caution that Bitcoin’s halving may be ‘priced in’ and that it may end up being a non-event compared to 2016. Nonetheless, there has been some indication that institutional investors are eyeing the leading cryptocurrency on the eve of its halving.
Analysts at Morgan Creek Digital and elsewhere have maintained that Bitcoin will sink lower as we approach the halving—only to explode to an all-time high by September. This prediction, however, remains far bolder than most have put forward.
Bitcoin Will Soon Have an Exceptionally Low Inflation Rate
As analyst Mati Greenspan recently pointed out, Bitcoin’s annual inflation rate will be 1.8% after the halving. The average inflation rate for fiat currencies globally is 3.41% by comparison. This, in and of itself, will make Bitcoin a more attractive asset.
However, we are currently amid a deflationary crisis. So, the verdict is still out on whether this low inflation rate will prove attractive to investors in the short-term. However, it is commonly said that inflationary pressures tend to rise after periods of high deflation—so Bitcoin’s long-term prospects remain strong.