Bitcoin up 4% as Reward Momentum Heads Into Halving

Bitcoin prices rose on Wednesday as the next halving event showed an increasing interest in the cryptocurrency.

The cryptocurrency rose to $ 9392.64 earlier today, and has risen more than 4% in the last 24 hours.

The coronavirus pandemic cryptocurrency exchange Kraken experienced an 83% increase in the amount of account signups over the week of bitcoin's price collapse, a result of buyers looking to capitalize on the low price.

Analysts have repeatedly emphasized that the recent digital currency gains is due to the halving event, which is due five days from now.

Bitcoin halving is a process of piding the number of generated rewards per block in order to maintain the total supply of Bitcoin, which will not exceed 21 million. Block rewards are the main engine of Bitcoin mining and, therefore, the main power behind the operation of the network.

"It is likely that price hikes are related to the price momentum heading into the halving, which was once seen as a bullish event," said John Todaro, Director of TradeBlock's cryptocurrency research.

“The positive price momentum for bitcoin started a few weeks ago as markets rose broadly with fears of a COVID-19 recession,” Todaro added.

“With the halving approaching, Bitcoin activity is approaching all-time highs due to miners competing for the last few coins” said Joe DiPasquale, CEO of BitBull Crypto Hedge Fund Capital.

"This increased interest, along with media attention and expectations surrounding the halving has benefited from technical support around the $ 8,700 range that kept price floating this week and pushed it higher today," said DiPasquale.

The CEO of BitBull set a key bitcoin level that he should surpass to continue rising, noting that the key resistance at $ 9,500 is still holding and will need to be breached before $ 10,000 is tested.

"No one wants to be stuck in the dollar for any length of time as the US government creates a massive debt bubble ready to burst. With no safe investment options, investors are looking for smart liquid investments like Bitcoin," he concluded.

Meantime, Bitcoin gains is still half its all-time high a few years ago.