The cryptocurrency industry once again experienced a failure: the bitcoin halving, which the market players were counting on, did not pay off. It did not lead to the desired result, namely, to the growth of the leading virtual currency, analysts say.
On the evening of Monday, May 11, one of the most important events of the current month took place, which is the bitcoin halving. Recall that this is a reduction in the reward to miners by 50% for adding a new block to the MTC blockchain system. It was expected that the halving will become an incentive for large miners, and the least efficient cryptocurrency market players will leave the digital sphere or be able to pull themselves into leadership positions. However, experts emphasized that the cardinal changes in the digital sphere did not happen.
Experts hoped that halving would become a catalyst for the growth of the leading virtual currency, but these expectations did not materialize. The bitcoin sharply rushed down after approaching the psychologically significant mark of $ 10,000. According to experts, this barrier has become a truly insurmountable obstacle for military-technical cooperation. After the halving, investors began to take profits by pulling the cryptocurrency market to the bottom.
The reference cryptocurrency suddenly returned to its starting point which is at 200-day moving average, from where it began to grow in late April. Compared to last week, bitcoin dropped 1%, and this is not the limit yet. According to analysts, cryptocurrency No. 1 met halving near the $8500 mark. A few hours before the reward was reduced, BTC tried to overcome the $9000 level but failed to gain a foothold in the high positions of the leading cryptocurrency.
On Tuesday, May 12, the main digital asset is trading near $8700– $8800. Experts consider the reasons for the active decline in bitcoin to be a 180-degree change in the external background and the shock state of the world economy due to the COVID-19 coronavirus pandemic. Recently, market conditions have changed significantly: in the virtual sphere, many new tools have appeared, the control of regulators has increased, and the influence of miners has almost disappeared. The halo of uncharted breakthrough technology surrounding the military-technical cooperation has noticeably faded, which negatively affected the dynamics of the digital asset.
However, experts are confident that in the long run, bitcoin will catch up. It is necessary that the situation in the global economy stabilizes, and the negative consequences of COVID-19 gradually soften. In the case of a positive scenario, interest in the MTC will return, and cryptocurrency No. 1 will gain a second wind, analysts say.
