Some investors predicting new all-time highs for bitcoin
Anticipation of the event helped drive bitcoin prices higher in the past few weeks — from a low of around $4,100 in mid-March to just under $10,000 on May 6. But prices have fallen back to about $8,700 now that the halving has actually occurred.
So what's next for bitcoin?
Several experts say bitcoin prices should go much higher — and even top the all-time high of just under $20,000 from late 2017. The logic? Economics 101.
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Demand for bitcoin may increase as investors view it as safer than government-backed paper currencies in the time of Covid-19 and extraordinary easing measures from the Fed and other central banks.
"Imagine if OPEC cut production in half overnight. what would happen to the price of oil? It would go up," said Zac Prince, CEO and co-founder of BlockFi, a firm that makes loans with cryptocurrencies.
Prince said he thinks bitcoin prices will eventually soar past $20,000 and skyrocket to as high as $40,000 to $100,000 over the next two years.