BTC whales warn: Upsurge in the price is an Organized FOMO
The recent massive surge in the price of bitcoin has been deemed as fake by BTC whales. A well-known trader, who is sitting atop a $20 million monthly loss from his anti-rally bitcoin positions, expressed his conviction over potential bull exhaustion. Several other BTC whales believe that ongoing bull run is fake. At the time of writing, BTC is changing hands at just above $9,100.
BTC whale claims that big players are manipulating small traders.
A prominent bitcoin trader claimed that big players are manipulating small traders to enter the market using the “halving” narrative. Earlier, a bitcoin trader claimed that the bitcoin is already priced in, and the halvening event would be a non-event. Several traders are anticipating that the scarcity post halvening would somewhat make bitcoin more valuable in the future, with a popular price prediction model even giving a $100,000 price target by the next year.
However, some traders believe the hype around bitcoin halvening is exaggerated. The price of bitcoin went from low $4,000s in mid-March to close to $9,500 on Thursday.
Several miners risk going out of business post halvening.
The bitcoin halvening event brings short-term risks to the very community that relentlessly produces bitcoin. Miners are risking going out of business as their dollar-based mining rewards get cut by half next month. So to cover their operational costs, BTC miners would need to sell their newly minted cryptocurrency stash for higher rates. The bitcoin reward for each block mined would go from 12.5 BTC to 6.25 BTC post halvening event next month. Some traders are positive about an extended upside momentum above $10,000 before the halving. In these unprecedented times, because of the global pandemic, it is hard to predict how the price would react post halvening.
The economic crisis all over the world is far from over as the pandemic continues. However, several countries are now starting to lift business restrictions and reopening the economy.