An Overview of The Bullish Cycle of Bitcoin in 2020
It has undoubtedly been a year full of huge moments. Bitcoin has entered a new bullish cycle after the halving in May, and the price increased month after month, leading up to a huge new milestone in December.
Actually, this was the first year when Bitcoin would surpass $23,200. So, we have seen a flurry of excitement over the crypto world and a spike in demand for cryptocurrencies. In this article, we provide an overview of the bullish cycle of Bitcoin and the factors that have influenced the price of BTC.
The halving is one of the most-watched events in the crypto community. It is built within the Bitcoin protocol and occurs when 210,000 BTC are mined. For the last three halvings, it took roughly four years before a halving happened. The crucial impact of the halving is mainly on the miners because it cuts in half the block reward they obtain. In fact, they obtain a block reward for verifying blocks of transactions in the blockchain network, and for this purpose, they have to solve computational problems.
For sure, this is a role that can’t be fulfilled just by anyone. It takes patience, skills, time, and great computer equipment to reap the rewards. Initially, the reward was 50 BTC, and each halving has decreased it, so in 2012, it was 25 BTC, then in 2016 12.5 BTC and in 2020 6.25 BTC. So, it is definitely a reason why fewer people want to mine on their own and join mining pools, or they start trading.
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The Past Bull Runs
What makes each halving special event, not just for the miners, it’s that that it has pushed Bitcoin in subsequent bull runs after each halving. Actually, the first halving has resulted in a slight difference in the price from $11 to $12. But, in 2013, the price would rise to $1,075 at the end of 2013. Likewise, after the next halving, the price will go up from $576 to $650.
As many beginners and experts know 2017, was a very important year for Bitcoin when it hit $17,000. From then on, the price has experienced ups and downs, but it has never gone back to a lower price as before the halving events. In 2020, the price increased to $9,999, and before the official end of the year has hit $20,000.
One of the reasons why halving boosts the price of Bitcoin is that it minimizes the number of new BTC introduced into circulation, thus making Bitcoin a scarce asset. What’s more, the entire supply of BTC is already restricted to 21 million BTC.
Online Exchange Platforms
The increased demand for Bitcoin has prompted a lot of people to sign up on online exchange platforms. Luckily today, compared to 10 years ago, there are many different trustworthy exchange platforms to choose from. Bitcoin Supreme crypto trading platform is an ideal choice for anyone that it’s a newbie to this area.
The site offers many resources and materials for new members, including a demo account that gives you a first-hand insight into online trading. Also, this is a great way to improve your knowledge and skills before you click the live trading option.
The platform is fully optimized for mobile trading, so anyone can trade on the move. Besides, this is an AI-powered trading site, meaning you don’t need to invest a lot of time or effort like in manual trading. But, you will need to make a deposit of $250 to sign up on the site.
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The Bullish Cycle
Before the halving occurred on May 11th, the price was fluctuating within a range of $8,500- $9,500. In the following months, there was a steady increase in the price. More specifically, in June, it soared to $10,211.23, then it climbed to $11,113.66 in July and reached a price of $12,301.19 in August. Furthermore, it continued to increase over the last three months of the year. In fact, in October, it topped off at $13,646.02, then it hit $19,157.16 in November. The last price sets a new record as it reached $24,228.83 in December.
In conclusion, over the course of 2020, the price of Bitcoin has increased by about 170%. A lot of people predict that Bitcoin will remain in a bull run in 2012 and surpass $288,000. However, some disagree and have estimated that it will reach a price of 100,000 in 2025.
Still, we can’t deny that cryptocurrencies are a new innovation in our society, and smaller events can have a huge influence on the price. All in all, the popularity of Bitcoin has had a great impact on investors and their investment decisions in this field.