Why will BTC halving stimulate price growth?

[The Cryptologist]

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

It's a mere speculation but there is sure growth prior to that event.  A bullrun could also happen anytime without a related event or a huge catalyst which is already proven many times in bitcoin. It is just less supply because btc 's block reward is cut in half and you know that in basic economics that less supply and more demand equals a rise in price. We just don't know if some group would take advantage of this and make a large FOMO.

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[btc_angela]

Some people say that Bitcoin halving will trigger the bull run but I don't believe that halving can create a substantial affect on Bitcoin. It can help Bitcoin's rising but not in a better way than that I think.

Did you check the previous halvings though? You can go around and see some graphs and come back and tell us if it doesn't have an substantial effect on bitcoin, Lol. Just thin about it, mining every block halving tells us the the supply is running out pretty soon, because it limits the creation or at least reduce the mining of every bitcoin, thus making it very valuable which equate to more demand with less supply causing the price to be expensive.

[crypthough]

It is basic economy, the demand is the same or even more and the rewards/supply is less. It's how the economy works, demand and supply create the price. Beyond that the reward is the wage of the miner and if he get fewer rewards he will increase the selling price of his BTC to compensate the reward decrease.

[camaund]

There is less supply from miners. Miner usually need to sell to cover expenses, this means less sell pressure. Also, there is a decrease in supply, if demand is the same or higher that means the price increases.

[mazdafunsun]

Logic is simple - less rewards to miners,that means that there will be less dumping on open market from miners.
This does not mean that it is true and halving actually will have significant impact on price, LTC is a good example, it recently had halving, nothing changed.

[GreatArkansas]

Logic is simple - less rewards to miners,that means that there will be less dumping on open market from miners.

Agree, it's like economics, if the demand will grow since Bitcoin has block halving event, then fewer rewards to miners so, we can experience the bitcoin being produce will lessen (supply), expect the price will soar up high too? Possible YES, just don't be sure this because if this will happen, we can also see some correction or hard dumps because there will be some person who bought Bitcoins at the lower price will sell their Bitcoins at the profits area, which is probably around the peak.

This does not mean that it is true and halving actually will have a significant impact on price, LTC is a good example, it recently had halving, nothing changed.

But LTC makes a huge pump when the halving is start to make noise. Do you see it is like Bitcoin? When last year around last quarter of 2018 we saw that the price of Bitcoin drops roughly below $4,000. After that, the noise about block halving of Bitcoin has started to buzz so, you think from $4,000 to $13,000 pump is the effect of the block halving next year? Or we can see more new highs? Since we have almost 6 months left before the block halving.

[Qcrypto]

But LTC makes a huge pump when the halving is start to make noise. Do you see it is like Bitcoin? When last year around last quarter of 2018 we saw that the price of Bitcoin drops roughly below $4,000. After that, the noise about block halving of Bitcoin has started to buzz so, you think from $4,000 to $13,000 pump is the effect of the block halving next year? Or we can see more new highs? Since we have almost 6 months left before the block halving.

Halving could be the catalyst or FOMO factor. People that knew the halving is coming were buying-in to secure their BTC's for cheap during that time. Now they might be waiting for the pump.
Thats how the price went from $4k to $13k.

[b3llsf1l3s]

It looks like Halving that happened this year does not really have a significant impact, even on the pair USDT, if we look at today's date, even the average market is starting to fall. It seems that the interest of crypto enthusiasts has begun to decline which has resulted in the current conditions. More supply drop but demand still the same, it's all just goes for nothing.

[Hallmader]

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

Basically the logic behind this is the pattern as well as the view that lesser reward means the reward amount is becoming more precious. The past two reward halvings came out with a bull run. We assume therefore that this third halving will also be resulting with a bull run. Why? Simply because it happened in the past. But I don't believe there is 100% certainly on that.

The second logic, which basically supports the first, is the perspective of some which essentially says the supply is dwindling, thus the lesser reward. This logic points us to the thought that lesser reward means that BTC is becoming more precious and hard to obtain. And since the other side is rising demand, this could mean a bull run. 

[Hypnosis00]

Totally unknown i think! but yes we can bound hope btc will moving more forward It's fiat value in near future then presents! 

Every halving has a positive result and has to think that this coming halving positively will behave the same. And I hope we don't have to put into doubts about this. With this coming event, it eventually gives courage for us to stay in the hold and be more patient. This is the only thing that helps to drive a better price, it believes not only for Bitcoin but it possible to uplift also with the altcoins.

[Hallmader]

I hear a lot of discussion around BTC halving that is expected in May 2020.
Many people are confident that this event will trigger the next bull run.

What is the logic behind this?

Basically the logic behind this is the pattern as well as the view that lesser reward means the reward amount is becoming more precious. The past two reward halvings came out with a bull run. We assume therefore that this third halving will also be resulting with a bull run. Why? Simply because it happened in the past. But I don't believe there is 100% certainly on that.

The second logic, which basically supports the first, is the perspective of some which essentially says the supply is dwindling, thus the lesser reward. This logic points us to the thought that lesser reward means that BTC is becoming more precious and hard to obtain. And since the other side is rising demand, this could mean a bull run. 

The small reward that miners get means that the available supply on the market will be reduced. This will affect the price because the coin holders in the market tend to hold in the long run so that with a small supply and a steady supply will make the price increase

Actually, there is no guarantee whatsoever but that is the kind of logic that comes to the mind of a lot of people. As a matter of fact, if we get a little pessimistic on it, there is a possibility that a group of miners would quit from their operation because the reward may not really be worth the operating cost. The value of BTC has to go higher each time there is halving so that the miners will remain adequately rewarded and satisfied.

But the reality is that the price of BTC is determined by the buying and selling public. Regardless of halving, the price could really fall if there is more selling than buying.   

[Duzter]

Bitcoin having limited supply is one of the prime reason for bitcoin achieving such a massive growth in very small time period. When the supply gets reduced further and there is more and more usage from common man automatically the demand is much more high. This gets reflected on the price. If I'm not wrong, some day each Satoshi will get used similar to an USD if global adoption takes place.

[Capt00]

I've read that the only reason why Bitcoin price starts pumping before the halving because people assume that the Bitcoin will pump in price. They will buy before the pump which results into Bitcoin actually pumping at the year of halving. Same goes for every copy-cats of Bitcoin. As long as a lot of people believing in something like this, it will surely happen.

They keep buying because they believe that there is a huge market change that could generate more gains, it is actually they are expecting bullish. This is the reason why the price goes high as the demand is also high. It is proven in the previous halving and people are considering this thing to happen again. But we can't presume prices where it goes cause it still depends on the market flows and demand.

[barbara44]

I've read that the only reason why Bitcoin price starts pumping before the halving because people assume that the Bitcoin will pump in price. They will buy before the pump which results into Bitcoin actually pumping at the year of halving. Same goes for every copy-cats of Bitcoin. As long as a lot of people believing in something like this, it will surely happen.

This may really not work this time around because people have seriously this period stayed away from FOMO, in the previous hype that we have had, most people have always been a victim of FOMO, and this was the thing that resulted to an increased value in 2017 that gave ATH that we got, because people kept believing that the price will continue to rise and because they don’t want to miss out.

Many keeps pumping money in from every angle which little did we all know that this was exactly the thing that was actually facilitating the price until we had no one that wants to FOMO again and then the market crashed. When halving comes like everyone believes, the effect of halving is not what will actually make us witness a price increase, but effect of our belief that it will is what may make it increase. Just like this bakkt, if bakkt will make the value of bitcoin grow without wasting much time, it would be because of our believes and  not the halving itself.

[bitbunnny]

I'm not sure about that. It might have positive impact on.price but only on short term and I don't expect some significant price rise.
Some expected much in that sense of Bakkt and since the price didn't grow now they have similar expectations from halving but they might end up equaly disappointed.

[Miklight88]

this will definitely does increase the price as thise in the mining business is having less reward for the work and the hype in price will be the only way to get back the profit in using fir the running cost, but also kind of surprise when bitcoin was very low and the reward was just 50btc then and same eletricity was consumed with low price and this keep me wondering how it was possible then but i realise that be in business is to have more profit.

[Darooghe]

Past performance not being a good model for the future, keep it in mind. Bitcoin has only existed for just over 10 years. That means there's only been two halving events so far. There's not that much data yet. A lot of people thought Bitcoin would be a lot further ahead in terms of adoption by now too. We'll just have to wait and see. If the price really tanks and stays down, i'm pretty sure that's going to invalidate the model anyway isn't it? Will decrease demand which must keep increasing for the model to work. Since payments with Bitcoin are not cutting it, we basically have to hope demand comes from the price mooning. If not it’s hard to see where it’s going to come from. I'd love for it to be accurate personally. I'll be richer than today in a couple of years if it is. I am optimism anyway.

[serjent05]

I'm not sure about that. It might have positive impact on.price but only on short term and I don't expect some significant price rise.
Some expected much in that sense of Bakkt and since the price didn't grow now they have similar expectations from halving but they might end up equaly disappointed.

I think this is different from Bakkt.  Bakkt is about adding adoption in the market but it does not mean it can double the number of people that adopted Bitcoin instantly while the halving is simply means supply cut into half and that is instant the moment that 6.25 Block arrive. What I am trying to say is that I believe that this halving has a greater impact than BAKKT.  The idea itself brings hype to the market and can easily turn a bearish sentiment to a bullish one.

[Cointikka]

Bitcoin Halving is bad for miners as the block reward drops in half but, good for HODLers.

The first halving happened in 2012 at that time the price of 1 BTC was $12.22. The second halving happened in 2016 and price of 1 BTC was $657.61.
The third halving is due to happen in 2020 and looking at the past trend you can expect the price of 1 BTC to go beyond the all time high.

A small update sep last year I wrote the above lines and was pretty much convinced that BTC should create a new ATH. Looking into the present scenario and the market conditions, I am pretty much convinced that there will be short Bull run early April .

BTC will go beyond the price of 10k but it will face a tough backward thrust at 11k. I do not think there will be a new ATH this year.

Things might change in the coming months before halving.

[crossabdd]

- first is the mining difficulty level will increase 2x, and trigger the small miners to retreat / stop. until bitcoin mining will decrease, while demand for bitcoin gets bigger.
- both follow the previous chart pattern. which when after bitcoin halving, charts continue to increase.
- I think the latter is by economic logic. which is when the item is more difficult to get, the price will be higher.