eToro says that new investors will flock to Bitcoin

The 2016 halving set a precedent. Its participants "were those already involved in the asset class"—blockchain scientists and data programmers who wanted a monetary system beyond government control. "After the halving in 2016, bitcoin exploded, both in terms of price and popularity. National newspapers were writing about bitcoin," Peters says. Bitcoin climbed toward $20,000. The price has since fallen below $9,000, yet interest hasn't waned. Heading into May 12, press coverage has doubled.

The years between that halving and now transformed who owns Bitcoin. eToro saw cryptocurrency investments rise 70% during 2017-2018. Now pension funds, high-net-worth individuals, and ordinary investors fearing they'll miss the next surge are watching. "It's no longer just computer programmers and blockchain scientists interested in Bitcoin," Peters observes. "Now it's pension funds, high-net-worth individuals and the ordinary person that believes Bitcoin has much to offer."

The ecosystem has changed. Regulators have set guardrails. Institutions have entered the market. Bitcoin topped the performance rankings across all major asset classes in 2020 so far. If prices climb and supply shrinks, how investors view crypto could shift. Peters sees the conditions shaping up for broader adoption. "Combine this with another price rally expected after the 2020 halving, and we could be on the precipice of crypto becoming a mainstay of investors' portfolios," he added.

Central banks worldwide are flooding the system with cash. In that environment, weaknesses in traditional finance combined with halving-driven scarcity might convince more people to hold Bitcoin.