Halving and COVID-19 Crisis May Lead To Miners War With Devastating Effects On Bitcoin Price

Bitcoin’s price is a subject of serious speculation. Now that the halving is just around the corners, experts and analysts are even more active.

While the majority of people rely on history as an indicator, there are those who believe that Bitcoin’s price will crash following the halving. In fact, some believe that the event, combined with the ongoing coronavirus crisis will cause a massive competition among miners with devastating effects on BTC’s price.

Bitcoin Miners War Post Halving

Bitcoin’s halving is scheduled to take place in May and price predictions are off the chart. Naturally, given that it’s an event that slashes Bitcoin’s supply in half, many experts believe that it will have a positive impact on the price.

However, that’s not the case for everyone. In a recent Twitter thread, a few popular cryptocurrency analysts had a rather different take.

According to some, Bitcoin’s price could drop down to the range between $2000-$2200 by May-June. The main reason for this massive decrease is the fact that there are mining operations that would want “absolute monopoly.”

These are prices well below the breakeven cost of Bitcoin mining even for large Chinese miners. However, some analysts believe that there are companies that could, in theory, afford to operate at a loss in order to establish full control over the market.

“This is an opportunity to put people out of business because faster miners won’t save them this time.” – A popular cryptocurrency commentator shared.

History Doesn’t Agree

First things first, history shouldn’t be taken as a definitive indicator for future actions. However, so far, in Bitcoin’s relatively short existence, the halving has always been a turning point.

The first one took place back in 2012, and in the following year, the price had increased by a factor of 10x. The second one happened in 2016, and it was just one ear before Bitcoin’s famous parabolic increase to $20,000 in December 2017.

However, there are those such as Meltem Demirors, CSO at CoinShares, who believes that the halving might not have an impact on the price because most of the trading happens through Bitcoin derivatives.