Certainly, the year 2020 is a special year with all the meaning of the word excellence, not only on the human side of the spread of the Corona epidemic, but on the global financial level, as many investment concepts have changed and Bitcoin is viewed differently than it was before.

The price of Bitcoin has risen from the level of $4,000 in March to 18,500 at the time of writing this article, making Bitcoin the best investment asset of all time in 2020.

Bitcoin mining reward split:

Bitcoin has been on an uptrend since May, the month that saw the Bitcoin mining reward halving, as the price of Bitcoin has since risen to approach the all-time high of $20,000.

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The Bitcoin split… an introduction to its importance to the crypto industry

Bitcoin is trading at $18641 at the time of writing, with the number of bitcoins remaining to be mined clearly decreasing, with only 3.4 million bitcoins left to be fully mined by the year 2140.

Low Bitcoin Supply and High Institutional Demand:

The current bullish trend of Bitcoin reverses 2017 in many ways, as demand from institutional investors increased significantly.

In 2017, the rise of Bitcoin was sudden and rapid, while in the year 2020, the rise was for a longer period of time in addition to the increase in the appetite of large investors for the currency.

According to analyze Chainalysis There is a major difference between 2017 and 2020, where in the current year an increase in appetite for Bitcoin has been observed by institutional investors.

According to the same analysis, the number of bitcoin holders willing to hold bitcoin for the long-term has reached an all-time high.

According to the same analysis from Chainalysis, the “non-liquid” bitcoin, as the analysis called it, that is, not available for trading, has clearly risen, as each wallet that gets bitcoin sends and trades less than 25%, while the rest remains for storage, and for most of these wallets they return to investors The long-term.

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The analysis also revealed that the amount of bitcoin in illiquid wallets has continued to rise steadily, as these wallets contain more than 77% of all the recently mined bitcoin.

Chainalysis points to the increase in high-value remittances and the exit of bitcoin from exchanges this year as further evidence that institutional investors are more engaged in the market compared to 2017.

The report stated:

Exchanges sent 19% more remittances of $1 million or more in 2020 while bitcoin was more than $10,000 compared to 2017.

This suggests that the individuals behind these transfers have more money to spend, as we would expect when larger investors step in.

Bitcoin price doubled:

Increased interest from institutional investors has led to a doubling in the price of Bitcoin since its halving.

Bitcoin was trading at $8,570 on May 11, 2020, the day the Bitcoin mining reward split occurred.

Today, the price of Bitcoin is $18,638, which means that the price has increased by 117% in the six months since.

While institutional investors had a significant role and influence in driving the price of Bitcoin, there were also some other factors that pushed the price higher, such as the pressure of the Chinese government on Bitcoin miners.

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It is worth noting that China currently controls over 60% of the Bitcoin hash rate and thus has a significant impact on the market.

The pressure of the Chinese government is to tighten its grip on the bitcoin mining market, as many mining pools in China have not been able to sell bitcoin.

As a result, the pressure to sell bitcoin has been reduced, and accordingly it can be said that the Chinese government intervened and indirectly increased the rise of bitcoin to its highest level in three years.

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What makes the Bitcoin blockchain secure? Is Bitcoin immune to hacking?

What is the “Binance Smart Chain” network? How does it work?