- Bitcoin is rallying ahead of the May 12 block halving
In the past day Bitcoin has surged as high as USD 10,040, breaching the USD 10,000 level for the first time since February. This is a continuation of a major Bitcoin rally which started following the severe crypto crash on March 12, when Bitcoin declined as low as USD 3,850. Now Bitcoin is up 160% in less than two months.
It seems the main driver of the current Bitcoin rally is the block halving which will occur on May 12, which is just three days from now. The block halving will cut mining revenue in terms of Bitcoin by 50%, due to the block reward dropping from 12.5 Bitcoins to 6.25 Bitcoins. This will drastically reduce selling pressure on the market, creating favorable conditions for a rally.
The rally up to now is simply due to speculation that the block halving will fuel a major Bitcoin rally, and based on past data, Bitcoin typically sees its biggest gains months after the halving. Therefore, this Bitcoin rally may just be getting started.
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