3 key fundamentals that will determine Bitcoin’s 2020 trend investors need to observe - Cryptonic News

3 key fundamentals that will determine Bitcoin’s 2020 trend investors need to observe

2020 is a crucial year for Bitcoin. The block reward halving, which occurs once every four years, is set to happen this May. Other than the halving, there are three important fundamental factors investors have to consider.

The three factors are:

  1. the hashrate of the Bitcoin blockchain network,
  2. the total number of unique addresses on the network, and
  3. the improvement of institutional infrastructure surrounding it.

Factor #1: Hashrate + Halving

In May 2020, the third block reward halving in Bitcoin’s history will be activated. It will decrease the reward miners receive by mining blocks on the Bitcoin network by half.

Since miners often sell BTC they mine to sustain their operations, it will decrease the inflow of BTC into exchanges and over-the-counter (OTC) platforms, affecting the circulating supply of BTC.

Due to the fixed 21 million supply of Bitcoin, BTC is a scarce asset that is actually deflationary. As such, any event that affects its scarcity will always have a major effect on the price trend of the asset.

Whether that effect will come in the short-term or the long-term remains fiercely debated. Some anticipate a sell-the-news reaction from investors after the halving. Historical data points towards a post-halving sell-off and it took approximately 6 to 12 months after the halving for bitcoin to see an extended rally.

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3 key fundamentals that will determine Bitcoin’s 2020 trend investors need to observe 3 key fundamentals that will determine Bitcoin’s 2020 trend investors need to observe Reviewed by Staff Reporter on January 13, 2020 Rating: 5

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