On the basis of a comparatively confident performance of dominant digital currencies, it is possible that the majority of financiers generally taken into account the low chances of a BTC ETF approval in the Q1 2019.
Per the digital currency tech analyst and cryptotrader known as Moon Overlord, the expected block rewards’ cuts on the BTC mainnet, scheduled for May 2020, might spark the recovery action for the world’s most popular digital currency.
The analyst pointed that historically, the currency began its recovery at least a year prior to the block rewards cuts. In the event that BTC blockchain displays a trend akin to the above before the 2020’s cuts, the digital currency analyst proposed that BTC might display a substantial trend reversal as soon as this May.
The so-called “halvening” of the BTC network means the drop in the reward amount received by the cryptominers on the BTC mainnet in return for mining blocks and performing transaction verification. As the supply of the BTC coins is fixed, the amount of coins generated in each block declines over time, with the network reaching the maximum supply of bitcoins at 21 million units.
Some cryptoanalysts have earlier suggested that the halvening does not notably affect the asset value as it is incites agitation and breeds expectations among the financiers.
However, the halvening has to be valued at some point on the long-term trend of the currency and numerous analysts think that, in accordance with Bitcoin’s precedents, the currency might begin displaying the impact of the halvening by the Q2 of this year.
Earlier, Willy Woo, a renowned digital currency analyst and the creator of Woobull.com, stated that BTC has the possibility of commencing a full-fledged recovery action in the Q2 of 2019, on the basis of fundamental factors.
In the course of the weeks to follow, as demonstrated by the minimal effect on the price movement of dominant digital currencies by the VanEck’s BTC ETF withdrawal, the cryptomarket is anticipated to display a low level of instability in a low and tight value range.
With no significant protocol updates underway and all advancements connected with regulations, including Bakkt, suspended because of the US government shutdown, the cryptoexchange marketplace might suffer a dull February.