Bitcoin’s (BTC) upcoming halving – a once-every-four-years reduction in the supply of new units of the cryptocurrency – has got traders, analysts and gawkers abuzz over the potential price impact.
German bank BayernLB predicted last year that bitcoin’s halving could drive its price to $90,000, roughly 12 times the current level.
Cryptocurrency markets got a sneak preview on Wednesday as a lesser coin, bitcoin cash (BCH), went through its own halving. Spoiler alert: There wasn’t much to see.
You’re reading First Mover, CoinDesk’s daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you don’t have to. You can subscribe here.
“All in all, this has been very anticlimactic,” Denis Vinokourov, head of research at Bequant, a cryptocurrency exchange and institutional brokerage, wrote in an email.
Bitcoin cash prices rose 5.9 percent Wednesday, entirely in line with its trading range on most days. Cryptocurrencies have been volatile since long before the coronavirus hit. Bitcoin climbed 2.3 percent on the day.
“In crypto, that’s normal,” Roger Ver, executive chairman of Bitcoin.com and a key proponent of bitcoin cash, said in an audio interview over Telegram from his home in St. Kitts.
Ver says he hadn’t been expecting much from the event. He’s been around the crypto industry since the early days, and witnessed bitcoin’s halvings in 2012 and 2016. This week’s halving was the first for bitcoin cash, which split off from bitcoin in 2017.
“A leap year happens every four years,” Ver said. “Life goes on. Nobody cares. After you’ve been through one leap year, it’s not interesting or exciting anymore.”
The episode offers a dose of reality for crypto-industry newcomers who might…