Bitcoin, which has been climbing so far this year after a terrible 2018, has been keeping traders and investors guessing over the direction of the market, teasing small rallies only to fall back once again.
The bitcoin price, now hovering around $8,200 per bitcoin, has more than doubled in price this year as other major cryptocurrencies also rally hard. Bitcoin rival litecoin is up more than 300% so far this year as investors look towards a cut to its supply scheduled for August, known as a halvening.
Now, a U.S. venture capitalist has praised bitcoin’s “exciting” progression in recent months and years but warned the market is heading for a “supply shock” thanks to next year’s closely watched bitcoin halvening event, now just 342 days away.
“What I think might be happening is an anticipation of a coming supply shock in 2020,” Alyse Killeen, managing partner of StillMark Capital told Bloomberg, a financial newswire. “In 2020 we’ll have just half the daily supply of bitcoin that we do now.”
“While we’re looking ahead to this supply shock and halvening event, we’re also seeing greater demand for bitcoin and new on-ramps for more familiar and conventional sources. There’s the anticipation that there will be a broader group of users and consumers who have an appetite for bitcoin,” Killeen said.
A bitcoin halvening—there have been two since bitcoin’s creation in 2009—is a fixed event and will occur after every 210,000 blocks are mined, or confirmed, by the system.
Some 12 months after the first bitcoin halving event in November 2012, the bitcoin price reached what was then an all-time high of $1,000. The 2016 halvening heralded last year’s bull run which peaked in December 2017 with the bitcoin price reaching an eye-watering $19,000.
The next bitcoin halvening is expected on May 22 2020,…