Bitcoin Halving Is Near But Since COVID-19 Few Care, Why?

The COVID-19 pandemic which began to leak from China towards the end of February has seen the chatter on Bitcoin halving fall to nearly zero. Even now that the event is next month, data shows that there are few talking about it.Learn more about Bitcoin's next halving and how it may impact the cryptocurrency market.

This has even prompted, popular analyst Mati Greenspan to jokingly suggest that there must be a conspiracy theory since no one is talking about the halving.

Does Bitcoin Halving Matter?

This historic event is one of Bitcoin's most reliable features. By slashing supply by half, it ensures that there is adequate demand to keep prices up. Historically, it has seen prices pump. That is in the long term and in the short term due to hype.

This time, in the short term at least, it seems the halving is having no effect. The same goes for its younger brother Bitcoin Cash which goes through its halving in two days. Bitcoin Cash has not seen any significant price change recently.

This is unlike the crypto market. Litecoin for example which underwent its halving last year, leading up to the event, rallied by around 300%. Nearly the same results were expected with Bitcoin and or Bitcoin Cash.

Some of those who have engaged in the topic have suggested two reasons for the failed rally. First, COVID-19 has been an all-consuming event. And in it the question of whether Bitcoin is a safe haven asset. In the long term, this will be critical.

Secondly, recent volatility has instilled fear in investors. Some are afraid that the event could fail to trigger a rally and are not buying right now. If there are no buyers, Bitcoin supply exceeds and prices slump.

What is happening now is a testament that historic charts and price movements are not a guarantee to a pump or dump.

There are still a few weeks to go before the event and Bitcoin is capable of making a complete turnaround. But even then it is unlikely we see a full-blown bullish scenario based on the Bitcoin halving.

You May Also Read.