The year started on a low. The free fall from the previous year (2014) had not found its bottom as we crossed over to 2015. As a matter of fact, the lowest floor since 2012 was touched on January 14, 2015, when a bitcoin exchanged for an average of $177.
At about this time, the cryptocurrency was receiving negative coverage from mainstreaming media, especially in relation to the Silk Road case, which was ongoing.
After that, the price rallied and contained itself between $200, as the floor, and $300, as the ceiling, for much of the year.
It is only in the month of November that the price broke the $300 ceiling and went all the way to approaching $500. It has since retreated but remained within the regions of above $400. What are the predictions for 2016? Will the price look upwards, stay in the current regions or bottom further?
Halving of the block reward and the Bitcoin price
Among the factors that might influence the Bitcoin price in 2015 is the halving of the block reward. As we cross over to 2016, Bitcoin miners are receiving 25 bitcoins after every 10 minutes. That is about to change.
The Bitcoin protocol is designed in such a way that the reward halves after every four years. 2016 is the fourth year since the last halving. Sometime within the New Year miners will begin receiving a reward of 12.5 bitcoins per every verified and confirmed block.
As a result, the public will have confidence in the entire technology and more people will want to own part of the cryptocurrency. This will contribute to driving not only the adoption but also the price of Bitcoin up.