2020-2-5 19:10 |
The third Bitcoin halving event, which will see the reward for each newly mined block reduced to just 6.25 BTC, is now less than 100 days away.
Historically, Bitcoin has witnessed striking growth in the months surrounding earlier block reward halving events and has already gained more than 32 percent in the last month.
Likewise, according to the prominent trader and technical analyst Rekt Capital, Bitcoin rallied 13,378 percent and 12,160 percent, respectively, as a result of its first and second halving events. As such, if Bitcoin achieves similar performance a third time, it could achieve a value between $385,000 and $400,000 in the near future
Should history repeats itself once more, anybody purchasing Bitcoin at its current price of ~$9,200 could be due to turn a serious profit. With that in mind, let’s examine three ways to gain exposure to Bitcoin prior to the halving.
Go Long with Bitcoin FuturesIn brief, futures are a type of financial contract known as a derivative. In the case of Bitcoin futures, these contracts track the market value of Bitcoin and allow buyers and sellers to agree on a price and date to later execute a trade with one another, regardless of what the current spot value of Bitcoin is at the time.
Because of this, if you think Bitcoin is currently undervalued and is likely to rise in the future, then futures contracts can potentially allow you to buy Bitcoin at lower than the market rate on the expiration date. For example, if Bitcoin increases by 30 percent by the time the contract expires, you will still be sold BTC at the rate specified on the futures contract.
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