Crypto experts believe the recent COVID-19 related price crash has reduced the risk of a halving price dump and may have set up a bull market.
The recent COVID-19 market crash has reduced the risk of a halving price dump and could have set up a Bitcoin bullrun, some cryptocurrency experts believe.
Earlier today Chainalysis brought together a group of industry experts for an online panel to discuss the impact of COVID-19 on Bitcoin and what it means for the future.
Chris Bendikson, Head of Research at CoinShares, said he believed the recent price crash in March had prepared miners early for the halving, which will reduce the sudden impact it could have had on their profitability. Those with outdated equipment had already been forced to drop out or upgrade: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 added this set things up nicely for a mid-term bull run:
“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.”
Financial crisis shows why we need Bitcoin
Alex Laughton-Scott, Associate Director of CoinShares, explained the crisis has shone a light on the beneficial uses for Bitcoin. He posed the question ‘have the fundamentals changed?’ and then answered his own question by saying:
“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.”https://cointelegraph.com/news/covid-19-has-reduced-the-risk-of-a-post-halving-price-dump