Finally, the long anticipated Bitcoin halving event of May 2020 has finally become history - a memorable one for that matter. Before the halving event, there were wild speculations within the crypto community on how the event was capable of doubling or even quadrupling the price of Bitcoin in the long run.
Clearly, none of those speculations have materialized but that it is not say that it is incapable of happening. With the halving approximated at $8,800, Bitcoin is already up 12% in about a month from the halving date. Another interesting thing has been the incredibly low price volatility that has seen Bitcoin trading mostly sideways.
What now appears to be a conundrum for many who missed out from buying Bitcoin before the recent halving event is - when really is now the perfect time to buy Bitcoin? The simple answer is that there is no perfect time to buy Bitcoin because of the erratic nature of the market.
The best time to plant a tree was twenty years ago. The next best time to plant a tree is now.
~ Chinese Proverb
At any rate, a more complicated but honest answer would say that now is the best time to buy Bitcoin. As you can see in the chart below which details the price trajectories of Bitcoin during the last two halving events, it appears that the halving price was never again seen as soon as the halving took place.
If the same scenario plays out, which is highly not unlikely, then Bitcoin may never fall below the halving price of $8,800. At press time, Bitcoin is trading at $9,900 which, as mentioned earlier, is just 12% up. So, this may very well be a perfect entry point because we are still not significantly distant from the halving price.
The prospect for Bitcoin becomes even more prominent than ever largely because of the trillions of dollars, if you like call it helicopter money, that were recently printed to palliative the American economy. With Goldman Sachs betting against the US dollar, the future remains incredibly bright for Bitcoin.
In addition, the gradual reopening of the global economy will, most likely, create a market and demand for Bitcoin as cross border payment activities begin to resume around the world. Candidly, it is even something close to a miracle that Bitcoin has remained very strong for most part of 2020 amidst a pandemic that froze the global economy. Now imagine what happens to the price of Bitcoin when the world returns to normal.
Therefore, the best moment to buy Bitcoin if history repeats itself is now. However, you should not test the depth of a river with both foot. You could buy Bitcoin with 50% of your budget now and then use up 25% (in the event of a 20 - 30% correction) to buy more. The last 25% could then come on board when there is real blood on the street which, in this case, is very unlikely due to the post-halving climate of the time.
The views in this article are purely for entertainment purposes ONLY and should not be taken as an investment advice. Anyone willing to invest in cryptocurrency should do their own before taken decisions.