Bitcoin appears to be in a reaccumulation phase. After the big run up last summer, we've seen the price decline and then bottom around $6,400.
The halvening event is about 2 months away and will decrease the reward for mining Bitcoin by 50%. As Satoshi wrote, “The price of any commodity tends to gravitate toward the production cost." So given estimates that the current cost to mine is around $6,500, one would reason to believe that the natural price of one BTC post-halvening would be around $13,000 or nearly 50% more than the current price.
Expect volatility ahead, but the market seems to be setting up nicely for the second half of 2020 and into 2021.
The halvening event is about 2 months away and will decrease the reward for mining Bitcoin by 50%. As Satoshi wrote, “The price of any commodity tends to gravitate toward the production cost." So given estimates that the current cost to mine is around $6,500, one would reason to believe that the natural price of one BTC post-halvening would be around $13,000 or nearly 50% more than the current price.
Expect volatility ahead, but the market seems to be setting up nicely for the second half of 2020 and into 2021.
