Bitcoin\u2019s upcoming mining rewards halving \u2013 which is slated to occur in May of 2020 \u2013 has long been looked upon as a catalyst for next major BTC bull run, primarily due to the historical precedent of these events.<\/p>\n
In spite of this, one research group is now noting that the direct fundamental impact on Bitcoin\u2019s inflation that is caused by the halving will not be enough to catalyze any sort of notable upwards momentum, although they also note that there is another reason why the event could spark an uptrend.<\/p>\n
In years past, mining rewards halving events have always been closely correlated with the starts of parabolic price cycles<\/a> that lead Bitcoin to fresh all-time highs.<\/p>\n It is important to note that there have only been a handful of these events in Bitcoin\u2019s relatively short history<\/a>, with the small sample size making it incredibly difficult to predict with any certainty that future halvings will have the same effects as the ones seen in years past.<\/p>\n This year, Bitcoin\u2019s inflation rate<\/a> will drop from 3.7% annually to 1.8%, which may not be a big enough reduction to catalyze any sort of upwards momentum.<\/p>\n Messari, a blockchain and cryptocurrency research group, spoke about this in a recent tweet, noting that while the inflation reduction in it of itself may not be enough to propel BTC higher, the reminder it offers the markets about the asset\u2019s scarcity may help fuel a price rally.<\/p>\n \u201cOn 2020 $BTC halving: + Inflation will drop from 3.7% to 1.8%. 2% inflation reduction is not a big enough catalyst + However, market will be reminded of BTC scarcity. @GrayscaleInvest & @CashApp will be buying majority of new issuance by Q3 2020,\u201d they noted.<\/p><\/blockquote>\n On 2020 $BTC<\/a> halving: <\/p>\n + Inflation will drop from 3.7% to 1.8%. 2% inflation reduction is not a big enough catalyst <\/p>\n + However, market will be reminded of BTC scarcity. @GrayscaleInvest<\/a> & @CashApp<\/a> will be buying majority of new issuance by Q3 2020 https:\/\/t.co\/Il94dreHBA<\/a><\/p>\n — Messari (@MessariCrypto) December 20, 2019<\/a><\/p><\/blockquote>\n\n