How is the Covid-19 pandemic affecting the current Bitcoin price? More importantly, how will the Covid-19 pandemic affect the BTC price in the coming months?
March 12th saw the Bitcoin price on exchanges fall to a 12-month low of $3,900. Some are, therefore, suggesting that people can no longer consider Bitcoin a hedge against major financial market downturns. The only question is, are they right?
Positive Covid-19 Bitcoin Price Predictions
Now more than ever, it is important for Bitcoin investors to remember that cryptocurrency investing is inherently high-risk. No one can predict how the Bitcoin price on exchanges will respond to a possible financial collapse. However, there are some reasons to be positive.
Andreas Antonopoulos Predicted Bitcoin Would Crash
Is the current BTC price likely to keep pulling back? Earlier in January this year, long-time Bitcoin proponent Andreas Antonopoulos suggested that this could happen.
Speaking on the What Bitcoin Did podcast, Antonopoulos sought to clarify how Bitcoin price stability relies on (approximately) $18 million flowing into the cryptocurrency market each day.
During recessions, cash liquidity starts to dry up. This results in fewer people buying Bitcoin. Antonopoulos, therefore, made it clear that in the event of a recession, he expects the Bitcoin price to fall sharply.
So far, Antonopoulos has been proven correct in predicting a major BTC price pullback. However, Antonopoulos also believes that Bitcoin will eventually recover.
Edward Snowden ‘Feels Like Buying Bitcoin’
Andreas Antonopoulos isn’t the only one positive that Bitcoin will recover at some point this year.
Taking to Twitter as Bitcoin was sliding in value on March 12th, CIA Whistle Blower Edward Snowden let followers know that: “This is the first time in a while I’ve felt like buying Bitcoin.”
According to Snowden, the recent Bitcoin Price pullback has been too quick. Snowden, therefore, suggests that people are currently selling Bitcoin out of panic. Once the Covid-19 pandemic begins to abate, he, therefore, expects Bitcoin prices to rally once more.
Bitcoin Halving is Almost Upon Us
The Covid-19 pandemic looks set to dominate Bitcoin news headlines for the foreseeable future. However, Bitcoin investors would be wise to remember that the next Bitcoin halving is also almost upon us.
In the week commencing the 18th of May, the number of new Bitcoin entering circulation each day will be cut by 50%. Just like other Covid-19 pandemic Bitcoin price predictions, no one can say for sure how this will affect BTC prices. However, halving is a reason for investors to be positive.
Historically, the Bitcoin price has made major gains in the 18-months that follow halving events. For this reason, it is important for current investors in BTC to think very carefully before panic selling.
Bitcoin is Not a Stock
No one can be certain how halving will affect the BTC price as we move further into 2020. However, panicking Bitcoin investors would be wise to remember that Bitcoin is not a stock.
Many are pointing out that Covid-19 pandemic effects on the stock market correlate to carnage on the cryptocurrency market. However, Bitcoin is not a stock.
Businesses can fail during a recession leaving stocks worthless. However, Bitcoin is not a business. Neither can Bitcoin fail, even if prices flatline to near zero. It is, therefore, possible that post-recession investors will see Bitcoin as a safe, and potentially very lucrative investment.
Will the Bitcoin Price Rise Again?
There is no question that recent BTC price pullbacks have shaken BTC investors. However, it is important to remember that Bitcoin has survived worse price corrections. It is also worth remembering that this is the first time that Bitcoin has faced a global recession in the making.
Will Bitcoin recover? Likely it will. All that remains to be seen is how Covid-19 will affect the long-term future of the financial markets as we know them.
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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