- US-based crypto rating firm, Weiss Ratings, recently upgraded BTC rating to A-.
- The company stated that BTC has been in the bullish market for over a year now, ever since December 2018.
- With the upcoming halving, Weiss Ratings expect BTC price to surge, although it also warned of a short-term correction.
The question of whether or not Bitcoin is a good investment has been asked for over 11 years now, ever since the coin got its first price. Over the years, many have attempted to describe the quality of Bitcoin as an investment option, among which is also American investment data provider, Weiss Ratings.
Recently, the company published its new rating of Bitcoin, upgrading it to A-, basically marking BTC as an excellent investment option.
The agency posted its announcement on Twitter, noting that the coin should surpass its 2019 high relatively soon. In fact, they confirmed that BTC is in the middle of a bull market that started as far back as in December 2018. They still warned that investors should not be surprised if a short-term correction takes place, but overall, Weiss Ratings seems to be rather bullish on Bitcoin at the moment.
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What caused the ranking upgrade?
The agency’s expectations are likely caused by the upcoming halving — an event that Bitcoin goes through roughly every four years. Whenever the coin mines 210,000 blocks, its block rewards get cut in half. The upcoming halving, expected to arrive in May, will be the third halving of the BTC network, and it will reduce block rewards from 12.5 to 6.75 BTC.
And, while there were only two such events in the past, BTC saw a price surge after both of them. The second halving is also what started the coin’s rapid growth, which eventually led its price up to $20,000 per coin in December 2017.
After reaching this ATH, the coin spiraled down to $3,200, which is still around three times higher than the price it had in January 2017, indicating that its lowest point after the bull run is always much higher than its average price before the halving.
Apart from Bitcoin, Weiss Ratings also praised Tezos, which saw a major surge in the past few months, and particularly over the past few days.
The agency claims that the project has four key features — a code with no bugs, flexible network management, real decentralization, and 5% of dividends on stored assets.