The recent COVID-19 pandemic and the coronavirus reduced the risk of a post-halving price dump of Bitcoin, the latest cryptocurrency news show. According to experts, the market crash has also reduced the risk of a halving price dump.
Earlier today, we could see how Chainalysis brought together a group of industry experts for an online panel in order to discuss the impact of COVID-19 on Bitcoin and what that meant for the future.
According to Chris Bendikson, who is the Head of Research at CoinShares, the recent price crash due to the coronavirus reduced the risk of a dump and prepred miners early for the halving. Speaking of which, this halving is said to reduce the sudden impact that it could have had on their profitability. Miners with outdated equipment had already been forced to either quit or upgrade:
“The result being that after the halving passes, plus maybe some months of potential hazard volatility, the industry, the mining industry will be in a much stronger position with an overall lower cost base,” Bendikson said.
The expert also talked about a potential bull run in the Bitcoin price news soon, stating the following:
“What that means is that miners are likely to not have to sell as high of a proportion of their mined coins as before the halving and the actual halving, when you add that to this, means that we’re potentially about to see a midterm bullish virtuous cycle in the making.”
According to Alex Laughton Scott who is the Associate Director of CoinShares, the coronavirus reduced the risk of a post halving price dump but also shone a light on the beneficial uses of Bitcoin. Scott asked the question “have the fundamentals changed?” and then answered his own question with the following:
“The short answer would be: absolutely not. And this global setup is one that very much could show Bitcoin, Bitcoin’s uses and values in their entirety […] We could be possibly witnessing a bit of a perfect storm brewing for Bitcoin in the medium term.”
All in all, during times of crisis, all correlations go to 1. In this scenario, Bitcoin will definitely face more volatility but with the current momentum, it has no problems to shoot even higher in the news.
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