Bitcoin (BTC) could reach anywhere from $20K-$50K after halving, Hedge Fund Manager Predicts
According to a new evaluation, Bitcoin’s recorded mining-reward halving in May 2020 could bequeath values for the cryptocurrency in a range between $20K and $50K.
Charles Hwang is the managing member of a small hedge fund Lightning Capital and is also an adjunct professor at Baruch College, he describes a multiple of bitcoin’s current price around $7,500.
Hwang in a recent post on Medium stated that he assumed demand holds steady at 633,000 bitcoin through 2021, while mining rewards drop to 328,500 bitcoin a year from the current pace of 657,000 a year. He added,
“This sudden shift in the supply curve will most likely be the catalyst for the next bitcoin bull run.”
“Lightning Capital is a small hedge fund, with roughly $50K of assets, but Hwang’s prognostication appends to an increasing number of estimates from investors and analysts attempting to assess the underlying impact of the halving – where the number of bitcoin mining rewards performed every 10 minutes is sliced in half. Following the cryptocurrency’s 11-year-old design, the cut happens every four years. Hwang said,
“There have been many people who claim there is no demand for bitcoin.” “However, the data from LocalBitcoins and dark markets demonstrates people are purchasing bitcoin.”
Bitcoin around the time was trading at $7,220 between a bearish trend and narrowing volatility. BTC has to hold tight on the $7,200 support or will risk exploring areas below $7,000. The ideal arrangement will be to reform the support above $7,500 and concentrate on dealing above $8,000.
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