Popular stock and crypto evaluation firm Weiss Ratings suggested that May’s halving event for bitcoin triggered the most recent bull run.
According to a tweet, Weiss Crypto Ratings claims the recent bullish rally which took BTC above $12,000 was the result of May’s block reward halving. Weiss said both bitcoin’s price and hashrate were showing a healthy trend and following the historical pattern of a sustained bull run post-halving.
On May 11, bitcoin underwent its third-ever block reward halving, which saw the amount of BTC mined drop from 12.5 to 6.25 BTC. While analysts predicted the impact of the halving had been priced into bitcoin months before the reward reduction, historical trends have shown a bull cycle starting in the aftermath.
Weiss also suggested that bitcoin’s price action was beginning to take cues from gold. As previously reported, bitcoin’s one-month correlation with gold has hit an all-time high.
According to Weiss, the positive correlation is “highly encouraging” and gives the ratings agency confidence that bitcoin will follow on the heels of gold in reaching a new all-time price high in 2020.
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