The price of Bitcoin is rebounding as it now circles $9,000. This comes as the Bitcoin halving draws closer. However, Bitcoin’s yearly average price is already approaching a new all-time high after the recent Bitcoin price surge.
Bitcoin’s price nears $9,000 as yearly average price approaches ATH
Bitcoin is trading at $8,962 at the time of writing, according to COIN360. Furthermore, close to the entire cryptocurrency market is in the green, following a week of bullish signals. With that said, however, Bitcoin is already on track to beat a previous all-time price high.
Specifically, Bitcoin’s recent gains mean that the premier cryptocurrency is about to reach a new record high for its yearly moving average price. The previous yearly average price high – north of $9,000 – came in early 2018, following late 2017’s momentous crypto rally.
Nevertheless, a crypto-asset analyst from investment advisor ARK, Yassine Elmandjra, now points out that Bitcoin is on track to surpass this previous record. According to the following price chart from Elmandjra, the yearly moving average price of Bitcoin is now surging.
Moreover, the chart demonstrates the massive increase in the yearly moving average price of Bitcoin in 2017. With that said, Bitcoin is currently tracking to surpass this previous peak – and it is now tantalizingly close.
Bitcoin’s yearly average price surging before Bitcoin halving
The yearly average price of Bitcoin is an important metric, seeing as it smoothes out some of the temporary volatility. As such, this presents a more stable, long-term view of an asset’s true price, regardless of short-term changes.
Consequently, the current trend suggests that the price of Bitcoin is about to surpass its previous yearly average price high. Elmandjra is also indicating that the Bitcoin halving could lead to another surge in the price of Bitcoin.
This is something that’s supported by well-known models such as the stock-to-flow (S2F) model. The Bitcoin halving, due in roughly two weeks, will effectively cut the supply of new Bitcoin in half.
As such, it stands to reason that the price of Bitcoin will increase, due to its growing scarcity. In fact, a version of the S2F model, known as S2FX, calls for an aggressive Bitcoin price rally to $288,000.
Elmandjra suggests that the Bitcoin halving could be more than just a price lever, and a ”historic event”. In a recent tweet, he suggests that the Bitcoin halving events could be seen as milestones by future generations:
”Bitcoin halvings will go down as historic events. When there is no Bitcoin left to mine, halvings will be used as a reference to this generation. A parent one day to his child: ’Can you believe your great grandfather was alive during the first Bitcoin halving?’”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.