With the halving event approaching, the anticipation involving it is speculated by the market observers more frequently now that the currency’s gain has gotten higher. Although the rate slipped from $9400 to $9200 in April, it ameliorated by 4% or more on May 6th. The cryptocurrency market specialists have their opinions expressed about the sudden increase.
John Todaro, Director of digital currency research for TradeBlock has spoken in regard to the increase.
“The run-up in prices is likely related to price momentum heading into the halving, which has historically been viewed as a bullish event,” he said. “Positive price momentum for bitcoin started a few weeks ago as markets broadly rallied with fears related to COVID-19 subsiding.”
Todaro also added that the increase in monetary price has affected the responses in regards to hash rate, allowing miners to reap profits and encouraging more miners constantly. This constant rigging is pushing the hash rate up.
When asked about the impact on hash rate, Joe DiPasquale, CEO of cryptocurrency hedge fund manager expressed a similar answer.
“With the halving around the corner, Bitcoin network activity is nearing all-time-highs, both in terms of hash rate and difficulty, which is a result of miners vying to get the last few pre-halving blocks,” he stated.
He has emphasized that the increase in interest has benefitted from the technical support around the $8,700 range which pushed the pricing to go up. While he appreciates the run-up in prices, DiPasquale speculates that the main resistance at $9,500 still holds and needs to be breached before $10, 000 can be put to testing.
The increase in the rate of the digital currency is being conjectured as an answer to the currency problem. Trading with Bitcoins is being regarded as the safest option for investors who are looking for smart investments and don’t want to stuck in the traditional dollars.