The upcoming bitcoin block reward halving is set to solve current Bitcoin (BTC) price problems, Samson Mow preempts as BTC struggles below support resistance level at $7,500 USD. He urges investors to HODL as the May 2020 event draws closer despite the current price challenges.
BTC halving will solve BTC price issues, Mow
A bearish narrative is starting to take shape in the Bitcoin community as the May 2020 halving event, as investors witnessed the price of Bitcoin drop to the $7,000’s region in the past few days. While price is up to $7,200 USD once again, after a slight 1.05% increase in the past 24 hours, the sentiments leading to the halving event remain bearish.
However according to Blockstream’s, Samson Mow, the reward halving will push the prices back up as supply of BTC reduces.
Replying to a published post on Forbes titled, “Bitcoin Isn’t Down Because of China, It’s Down Because You Don’t Need It”, Mow explains that at $9,000 levels, over $16.2 million USD is required to keep the price stable every day to buy up the 1,800 BTC mined daily.
Bitcoin is down because we’re still in the phase where we mint 1,800 $BTC a day. At $9,000 price levels, $16.2 million a day is required to maintain a stable price. The upcoming halving will fix this. Weak hands can GTFO. https://t.co/05j6nc5Wci
— Samson Mow (@Excellion) November 24, 2019
With the halving on the horizon, a lower supply of BTC will hypothetically mean miners can sell BTC at higher prices if the daily buyback value remains anything close to $16 million.
It is prudent however to include miners who HODL, effectively reducing the BTC supply sold hence the $16.2 million estimation may be a stretch.
Not all mined #BTC are coming straight to the market, so your thesis isn’t right. Halving is just a narrative which was priced in already, it’s nothing fundamental. For a higher price we need more speculators + adoption.
— KVESTOR (@KVESTOR11) November 24, 2019
Samson however believes that miners with a capacity to sell should sell as it would make it equally profitable as a non-miner HODLing. He said,
“Bitcoin mined is “on the market” already. A miner hodling is the same as a non-miner hodling.”
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