Chart of the Day - Monday, May 4th, 2020

Today’s Chart of the Day was shared by Matt Weller of Forex.com, in an article titled: "The Bitcoin Halving: What Traders Need to Know." It's a weekly candlestick chart of Bitcoin priced in US dollars, going back to 2012. In the article, Matt discusses the third Bitcoin "halving" event that is expected to occur around May 11th or 12th. This event is programmed into bitcoin's code to take place every four years. It essentially reduces the reward given to miners by 50% per block mined. Matt explains: "Bitcoin has thrived in the wake of its previous two halving events (though we’d be remiss not to remind readers that past performance is not necessarily indicative of future returns!). From a purely supply and demand perspective, a bullish reaction to supply cuts makes sense; after all, at current prices, the amount of newly-created bitcoin each day (which is usually sold into the market by miners) will drop from $16M to closer to $8M. In this way, it’s not surprising that the previous two bitcoin halvings kicked off huge rallies of 10,000% and 2,500%, respectively." Click here to check out the full article.