But has the easy money already been made?
Still, digital currencies are incredibly volatile.
"The halving is a temporal and technical event that has no bearing on bitcoin's long-term value," said Adam Traidman, CEO and co-founder of BRD, a digital wallet for cryptocurrencies.
Traidman said he expects bitcoin's price to eventually start rising steadily again but he is not predicting a dramatic increase over the next few months.The volatility may also limit the allure of bitcoin as a viable currency. How can you use something as a form of payment when its price is so unstable? People will be unlikely to try to buy goods at a store (either a physical one or a website) if the value of a bitcoin is changing so rapidly.
"We're jumping the gun when talking about bitcoin as a form of payment," said Daniel Polotsky, CEO of CoinFlip, a bitcoin ATM company. "It's too speculative and unpredictable to be used as currency."
That's why Polotsky says investors need to treat bitcoin or other digital currencies as a long-term buy-and-hold investment.
"I know a ton of people that got into bitcoin in late 2017 at the peak, and I feel for them," Polotsky said. "But it's a marathon. You need to own bitcoin for decades. A majority of traders will lose money trying to time market moves."
Simply put, bitcoin is still too speculative an asset for many investors — and the wild swings in price will limit its attractiveness.
Bitcoin is soaring as investors panic about coronavirus
Bitcoin is soaring as investors panic about coronavirus
"The problem is that we are looking at the actions of a few speculators," said Alex Mashinsky, CEO and founder of Celsius Network, another crypto lending firm.
He argues that the price of bitcoin could be stuck hovering around $10,000 for a while until the impact of the halving is fully priced into bitcoin. Others agree.
"There was a psychological impact when we approached the halving due to the significant reduction in supply. But the easy money in bitcoin has been made," said Gavin Smith, CEO of cryptocurrency exchange Panxora.