Halved Rewards, Safe-Haven Assets, New Joining of Large Agencies | BTC Will Soar in the Fourth Quarter

5 min readOct 25, 2019


Investors may still flutter with fear about the plunge of BTC in the early morning of Sept. 25. It has fallen more than $1,700 in three hours, a drop of more than 22%, while the decline of other cryptocurrencies was even greater. Sept. 25 is another unforgettable day for investors who have their fortunes be harvested after Sept. 4. Where will BTC’s price go next? How will investors proceed to the next layout?

Market Pullback, A Plunge of 1,700 Points in Three Hours

At about 2 a.m. on September 25, the BTC’s price fell sharply from 9,526 to 7,779 in three hours, a drop of more than 22%, which is a rare plunge in the crypto market this year. Meanwhile, top cryptocurrencies and altcoins have turned into the plunge mode with a short-term decline of 20%-30% and another decline of 700 points in BTC from 21:00 to 24:00 on Sep 26. Investors despaired and the confidence towards the market fell to the record low.

K-line of Bitcoin (Source: 58COIN Exchange)

Every time the market plunges, participants will find the reason. The reason for this decline is the pullback of the market since three rounds of the rally. The long-term liquidity at the high points is to balance the power between longs and shorts and make preparations for the halving of next year through whipsaw.

The Third Halving is Coming, Can BTC’s Price Surges to $100,000?

The Bitcoin mining rewards halve every four years and have halved twice in 2012 and 2016 respectively. It is expected that the next halving will be carried out in May 2020. Undoubtedly, the supply of BTC will reduce after halving. What’s more, if the demand remains the same, the price will fluctuate inevitably. What investors mostly concerned about is the surging opportunity brought by the third halving.

Let’s try to find some clues by reviewing the data of the previous two halvings.

The first halving occurred on November 28, 2012, when the price of bitcoin was about $11. In the six months before the halving, the price ranged from $2 to $6, and the highest price soared to $1,200 one year after the halving, 110 times the price before the halving.

The second halving time happened on July 9, 2016, when the price was about $741. In the six months before the halving, the price ranged from $200 to $350, and the highest price soared to $19,000 one and a half years after the halving, 54 times the price before the halving.

We can conclude that six months before each halving is the best time to buy bitcoin, and 12 to 18 months after halving when the price surges to the highest, during which may be the optimal selling time.

BTC Reward Halving Time and Amount

The third halving is scheduled to take place on May 19, 2020. We can boldly guess the best purchasing and selling time, they are before November 2019 and between May 2021 to November 2021 separately. The estimated earnings are at least 10 to 50 times. If calculated according to the current price of $10,000, after May 2021, the bitcoin price may surge to over $100,000.

Unstable Political and Economic Situation, BTC Becomes the New Safe-Haven Asset

In addition to the change in supply and demand caused by halving, the instability of the global political and economic situation has also led to an increase in the market’s investment in bitcoin, which has accelerated the rise in bitcoin prices.

The economic slowdown in the world’s major economies, the Sino-US trade war, the upcoming Brexit and the hyperinflation in Argentina and Venezuela — making traditional investment risky, and more people turn to safe-haven assets such as gold and bitcoin. Data shows that the price of bitcoin has increased by 262% from the lowest at the beginning of 2019.

Joining of Large Agencies Drives the Rise of Bitcoin Market

In addition to the above reasons, the gradually increased interest on digital currency from the large institutions serves as another factor driving the future rise of Bitcoin.

In February 2019, JP Morgan Chase & Co., the largest financial services organization in the United States, launched JPM Coin, a cryptocurrency used for instant settlement of payment transactions between customers.

In March, Fidelity Digital Assets (FDAS), the digital asset trading and custody arm of the Fidelity Group, which manages the world’s trillions of dollars, was launched.

On June 18, the Testnet of the cryptocurrency Libra, which was created by the global social networking giant Facebook, was launched on GitHub, and the White Paper was also released. Though Libra was opposed by the United States Senate later, it proves how influential the digital currency is.

On September 23, Bakkt, a digital currency trading platform created by the US Intercontinental Exchange (ICE), was officially launched. Although the transaction was bleak at the beginning, Bakkt’s “physical delivery” approach will become a more preferred trading platform for institutions and large capital holders.

It is predictable that with the increasing scope of the digital asset recognition, more traditional financial giants will join the cryptocurrency realm and launch their featured products. Of course, the higher the attention of Bitcoin got from the global financial giants, the higher its price will be.

Bitcoin may not be the “rich creator” as it was several years ago, however, there is no doubt that the Bitcoin price will rise steadily over time with the relaxation of regulation, the rival between institutions, and the construction of the industry infrastructure, making bitcoin more close to digital gold.

If you are a person who believes in Bitcoin, currently, it is the best time to buy. If you do not know how to buy, go trade on 58COIN Exchange (www.58ex.com). If you are a conservative investor and want to get bitcoin steadily, buy the Cloud Mining and earn a certain amount of BTC every day through mining in the pool. To get it faster, you can purchase BTC through spot trading. Since the platform has launched the “zero fees” activity in the spot trading area, you can catch the chance and save the transaction fee.

Of course, time will judge the correctness of the price prediction. Investors should be aware that investing in digital currencies may involve substantial risk, please conduct your research when making a decision.

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