Thanks to Business Activity on Blockchain, BTC Will Recover Soon
Bitcoin continued swinging wildly on Friday. Yet business activity on the blockchain has never been better, analysts say. They are convinced that this flurry of activity will assuage people’s worries about the leader of cryptocurrencies and will push its prices to $100, 000 by the end of the year.
Meanwhile, Bitcoin shed 6% at the end of the week, trading as low as $36,115.
Analysts advise to look at a halving event to assess Bitcoin’s future direction correctly. This event, which halves the reward for mining Bitcoin transactions and the supply of newly minted coins, occurs every four years in order to rein in inflation. Halving events in 20212 and 2016 were followed by Bitcoin’s rise.
The latest halving event was in May 2020. It cut the block reward for mining Bitcoin from 12.5 BTC to 6.25 BTC. It also brought supply and demand to investors’ attention. Analysts suggest that the current halving cycle indicates that Bitcoin’s prices have room to climb. i
Analysts also negatively react to the narrative that cryptocurrencies cause damage to the environment. In their opinion, this narrative was intentionally created by the ESG movement and Elon Musk. The energy used to mine blocks on the blockchain is not polluting, at least in the United States, and should not be used against Bitcoin or other cryptocurrencies, analysts say.