NEW YORK (Reuters) – Investors expecting a sudden surge in bitcoin’s price, after it underwent a technical adjustment three weeks ago that reduced the rate at which new coins are generated, may have to wait a few months, or perhaps a few years.
FILE PHOTO: Illumination of the stock graph is seen on the representations of virtual currency Bitcoin in this picture illustration taken taken March 13, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
Bitcoin traded in narrow ranges after it went through a third so-called halving on May 11, which cut the rewards given to those who “mine” bitcoin to 6.25 new coins from 12.5.
There were some expectations that bitcoin would soar, similar to what happened after the two previous adjustments as the “halving” effectively decreased its supply.
The virtual currency has gained 11% since the adjustment, but it had more down days than up days and analysts said technical momentum overall was negative. In contrast, bitcoin had soared more than 40% from January this year until the “halving.”
On Thursday, bitcoin was at $9,783 BTC=BTSP. It breached $10,000 twice after the “halving” but retreated as it found tough resistance at that level.
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