In case you missed it, the supply of new Bitcoin hitting the market will drop this year. The event, known as the Bitcoin halving, will see the number of Bitcoin rewarded to miners per block fall to just 6.25 from 12.5.
With the industry eyeing the upcoming Bitcoin halving, the crypto research firm Weiss has increased Bitcoin’s rating to an A-. The ratings agency cites improving fundamentals and positive price action as the reasoning behind the upgrade.
BTC Back to Top of the Class Ahead of Bitcoin Halving
Weiss Crypto Ratings has just bumped Bitcoin up a grade. The firm now deems the number one crypto asset as “excellent”, giving the asset an almost perfect “A-“.
#Bitcoin upgrade: The Weiss Crypto Rating for #BTC is now A- (excellent), thanks to improving fundamentals and positive price action ahead of Bitcoin's next halving.https://t.co/vyb8wxympt
— Weiss Crypto Ratings (@WeissCrypto) February 7, 2020
According to researchers at Weiss, Bitcoin’s fundamentals have been improving ahead of the much anticipated Bitcoin halving this year. Although the firm does not detail exactly which fundamentals it is referring to, there have been some pretty impressive Bitcoin advances of late.
As NewsBTC has reported several times previously, the Bitcoin hash rate is currently close to the highest it has ever been. The surging measure of computing power securing the network shows that the BTC mining industry is extremely optimistic about the asset’s future.
Similarly, Bitcoin scaling solution Lightning Network has seen some pretty bullish developments of late too. As Lightning Labs CEO Elizabeth Stark tweeted yesterday, the development firm just received another $10 million in funding from investors.
Those developing the network are hoping that it will allow Bitcoin to serve a much larger number of people without sending transaction fees spiralling upwards as they did in 2017.
Today we're one step closer to bringing #bitcoin to a billion people.
Lightning is making this a reality. ⚡️
Can't believe how far our community has come building new use cases and bringing financial freedom to the world. ??https://t.co/SgplohDRBz
— elizabeth stark ? (@starkness) February 5, 2020
Another positive is the number of people interested in the Bitcoin halving itself. Google is seeing far greater search volume for the term than it has in the run up to either of the previous cuts to BTC supply. Past Bitcoin halvings have been followed by two of the crypto asset’s most explosive price runs ever. Many industry observers are interpreting the fact that more people seem interested in the event this time around as wildly bullish for Bitcoin’s future.
Positive Price Action Leading into BTC Halving
Weiss also cites the positive price action leading into the Bitcoin halving as reasoning behind the rating upgrade. Just over a month ago, as 2020 opened, Bitcoin traded at below $4,000. A single Bitcoin now costs more than $9,700.
The surging price prompted Weiss to describe the Bitcoin market’s momentum as “excellent”. This is the highest of any digital asset according to the firm. The next is Tezos (XTZ), which Weiss describes only as “good”.
Related Reading: Bitcoin Funding Rate Hits 0.12% on BitMEX: BTC Historically Fell 7% Afterwards
Featured Image from Shutterstock.
