Halving Hype Drives Second-Strongest Spot Volume on Record. The run-up to Bitcoin’s halving has driven near-record volumes, with April 30 posting the second-largest daily trade on record.
Pre-halving speculation has driven historic volumes of crypto trade, with November 30 producing Sell bitcoin to Debit Card the second-strongest single day for volume on record according to a report published by market data aggregator.
Notional volume for BTC options on Chicago Mercantile Exchange, or CME, also tagged a new record in recent days, with 202 contracts changing hands on May 5.
The dominance of Tether (USDT) on the markets has continued to extend, with USDT pairings representing 74% of all trade between Bitcoin and stablecoins or fiat currencies.
Some industry executives believe that the price of Bitcoin may drop following the May 11 halving. After the block rewards of Bitcoin miners get cut in half, their revenues sell bitcoin to cash also drop substantially. Typically, it affects overleveraged and small miners, forcing them to shut down their machines.
This will be the most brutal Bitcoin Halving in history. Production cost is about to double to $14,000. 70% above the current price.
A widespread theory is that as miners capitulate, they will begin to sell Bitcoin in the cryptocurrency exchange market and add significant selling pressure, which leads to more miners leaving and so on, resulting in the mythical “mining death spiral.”
This year, there are many variables that may prevent such a trend from occurring. Four main arguments against the capitulation of miners are: cheaper electricity in China decreased operational expenses due to weaker currencies, drop in energy price due to government lockdowns worldwide, and the adjustment of mining difficulty.
China reportedly comprises roughly 65% of all Bitcoin computing power, according to the latest data.
Consequently, countries and regulators have rushed to set new compliance requirements to deal with user privacy and data collection — like the General Data Protection Regulation in Europe or the General Data Protection Law in Brazil, to name a couple. Parallel to that, there has been a new trend to seek new technologies like blockchain to solve privacy problems.
In this regard, contrary to the initial perception of many, blockchain technology may not only be compatible with the GDPR but may also help sell bitcoin for perfect money increase privacy levels and data protection, and return the property of data back to the individuals. As such, blockchain technology can be used as a privacy tool. For that reason, many industry players have started competing for leadership in this area.
Blockchain technology as a solution
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