Bitcoin Crashes 10% As ‘Halving Event’ Approaches
Last night Bitcoin crashed nearly 10% from a recent run to over $10,000 per coin. As the May 12th halving event approaches, speculators are watching closely debating whether the event will be a catalyst for price appreciation or a roadblock for the coin’s functioning as miners lose 50% of their compensation.
The price has dropped as much as 14.3% from it’s 3 day high-to-low.
The upcoming bitcoin ‘halving’ will be the third event of it’s kind since the inception of the cryptocurrency. The ‘halving’ will see the number of bitcoin compensated to miners halved; dropping from 12.5 bitcoin per block to 6.25.
On one side of the coin, pundits see the halving of the reward to miners as bullish for the currency, where miners make up the biggest cumulative seller. On the other side of the coin, some see the reduction in compensation resulting in less miners causing a slow down in liquidity and creating possible security risks.
Many have gone to Twitter to blame crypto exchange Coinbase suggesting they played a role in last nights volatility. Some arguing that the exchange always seems to be down during the ‘big moves.’
The price at of Bitcoin at the time of publishing 9.2% to $8,820.
Information for this briefing was found via CoinDesk, Twitter and YouTube. The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.