On Monday, it’s finally time for bitcoin’s halving. This, which happens every four years, means that the reward miners receive for solving blocks on the bitcoin blockchain decreases by half – and many have predicted that this will lead to price rally for the cryptocurrency.
The production cost goes up
At the end of last week, the price of bitcoin went up – but over the weekend the cryptocurrency lost a big chunk of its value. Now a cryptocurrency expert believes the price may be on the way to being even lower, News BTC reports.
Charles Edwards, cryptanalyst and founder of Capriole Investments, argues that the bitcoin price will keep falling based on two factors.
Firstly, he believes that the production cost for miners will go up after the halving. This, he believes, means that the miners will sell off more bitcoin to cover their costs – which in turn will increase the supply of bitcoin and the price will fall.
FOMO-effect disappears
Secondly, he believes that the so-called FOMO (fear of missing out) effect that led many to buy bitcoin before the halving has now disappeared. This, he says, means that more and more people will get rid of their bitcoin.
Overall, Charles Edwards believes these two factors could lead to a 30 percent price drop for bitcoin, News BTC reports.
