Is Bitcoin Ready For All Time High

Bitcoin, a cryptocurrency, displayed against a green background.

Bitcoin has not come back to it’s all time high of $20,089 back in December 17, 2017. It has been more than two years now. What would cause the price to move back up to its all time high? The Bitcoin Halving on May 2020 was expected to get the Bitcoin price back above $20000, but that did not happened?

Every four years, the number of new Bitcoin issue is reduce by half. In 2012, the number of new Bitcoin was reduced from 50 to 25. The havings and amount of mined Bitcoin is listed below.

Halving Date New Coins(Every 10 Minutes) Mined in period
Halving 1  Nov 28,  2012  25  5,250,000
Halving 2 July 9,  2016 12.5 2,625,000
Halving 3 May 11, 2020 6.25 1,312,500
Halving 4 Expected 2024  3.125 656,250
Halving 5 Expected 2028  1.56 328,125

 

The maximum supply of Bitcoin is only 21 millions and the total supply in circulation is about 18.43 millions. With Bitcoin at a price of $9220, this would give Bitcoin market cap of about $170 billions. Can Bitcoin price ever go back to a low of $65.53 in July 5, 2013? At that price, Bitcoin market cap would be just $1.2 billion. Bitcoin price would highly unlikely to go back to that low price. Any company or person could buy up all of the coins if the price every reach that low price. But this will not be possible. The cost to mine new coin is now between $5000 and $8000.

 

Total Supply 18,430,925 BTC
Max Supply 21,000,000 BTC
All Time High
$20,089.00 USD
(Dec 17, 2017)
All Time Low
$65.53 USD
(Jul 05, 2013)

 

If Bitcoin price can’t go too low, can Bitcoin price go up too high? What would make Bitcoin price to go higher? More speculation and more Bitcoin holder of the coin may help? But such speculation is not sustainable. One person’s profit is another person’s loss. At current bitcoin price, the cost to mine new coin is almost the same as the price of the coin. Has Bitcoin created any value or Has the creation of Bitcoin and the cost of generating new coin equalized?

The recent breakout of $10K in Bitcoin price is showing great sign of reaching $20K all time high in December 2017. The combination of recent halving in May 2020 and the great momentum will provide a great tailwind for future price appreciation.