Bitcoin could see a major rally in 2020 – here’s why…


Jul 2, 2019
Bitcoin investors are on high alert in anticipation of a Bitcoin rally in 2020, believed to follow the Bitcoin halving event. A halving occurs every 4 years, or 210,000 blocks, and has heralded bull runs in the past. Bitcoin experts expect a major Bitcoin rally in 2020 - here’s why.

What is a Bitcoin halving?

A halving, or ‘halvening’, is an event on the Bitcoin network that occurs every 4 years or 210,000 blocks. A halving is essentially when the miners’ reward for verifying transactions and creating blocks is cut in half. According to eToro, “a Bitcoin halving means that the rewards that Bitcoin miners receive for validating transactions are reduced by 50%. So, after the last halving event in 2016, the blockchain went from mining 3600 BTC per day to mining 1800 BTC. Following the Bitcoin halving date scheduled for May 2020, only 900 BTC will be mined a day.”

Since Bitcoin’s inception, the reward for mining has been cut in half twice. The original mining reward (back in 2009) was 50 BTC. It dropped to 25 BTC in 2012, and then to 12.5 BTC in 2016. The 2020 halving will see the reward drop to 6.25 BTC - which is still substantial.

The Bitcoin interest rate is also expected to drop - lower than the interest rates of developed countries like the United States, the United Kingdom, and Australia. The current interest rate sits at 3.9%, and will drop down to 1.95% following the halving event in May.

Why can we expect a Bitcoin rally?

Bitcoin experts expect a major Bitcoin rally in 2020 - here’s why:

Although we don’t have much information to go on with regard to bull runs following halvings, things are looking promising. To be fair, there have only been two halvings in Bitcoin’s history, but each of them has heralded a Bitcoin bull run that eventually resulted in two seperate all-time-high prices at the time.

2018 and 2019 were fairly dismal years for Bitcoin. 2018 was particularly rough, with the coin beginning to rally in 2019. Investors have been holding with bated breath, waiting for the next Bitcoin bull run to hit and carry Bitcoin’s price over the record achieved back in December 2017.

Particularly for those who bought at the all-time-high, this next Bitcoin bull run could very well be a make or break situation. Wondering whether you’ll ever see ROI must be incredibly frustrating, but many analysts have suggested that Bitcoin could reach a $1 trillion market cap within the next couple of years, or around $50,000 per BTC. This would see even those who bought at the top, achieving a very impressive ROI.

Historically, both the 2012 and 2016 halvings have heralded a bull run. The first bull run hit in 2013, and saw Bitcoin reach over $1000 (the ATH at that point in time). The 2017 bull run is most famous for achieving enormous price gains, all the way up to $20,089 per BTC - which has remained the ATH for the past two years.

When can we expect the Bitcoin rally?

Bitcoin experts expect a major Bitcoin rally in 2020, if we look at the historical evidence, it’s likely that we’ll already start to see price gains now. However, the bull run will probably only hit after the halving in May (the official date hasn’t been announced yet, although there are rumors that it will be on 13 May). This halving event could be what sends Bitcoin over the top. Aside from reaching a new ATH (which seems fairly probable), the halving could also spur mainstream adoption. In a ravaged global financial and political climate, people are starting to look for alternatives. Bitcoin’s performance following the halving could be an indicator to the general public that it’s something to be taken seriously. Without a doubt, the May 2020 halving will be a big one.

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