29
views

The Risk of a Post-Halving Price Dumping Limited By the Coronavirus Pandemic

A cryptocurrency market crashed has ensured thanks to the coronavirus pandemic. However, crypto experts believe the crash has reduced the risk of a halving price dump and has possibly started a Bitcoin bull run.

Chainalysis played host to several industry experts for an online panel discussion a few hours ago. The discussion was concerning the coronavirus effect on Bitcoin and its roadmap.

Chris Bendikson of CoinShares sees last month’s crash as helpful to miners. It gave them early preparation for the halving by limiting the sudden effect halvings have on their profitability. Miners with outdated equipment had time to either stop mining or upgrade.

Bendikson expects the mining industry to emerge stronger following the halving event. The expectation is due to a lower cost base despite high expected volatility. He even pointed out the positive effects of Bitcoin’s mid-term bull run. Miners may not need to sell much of their mined coins as before the halving.

Another CoinShares personnel, Alex Laughton-Scott also contributed to the discussion. He views the crisis as helpful in sensitizing people on Bitcoin’s benefits. After having observed that there were no changes in the worldwide fundamental setup, he thinks it may reveal the uses of Bitcoin and the entire value chain. 

Scott anticipates the possibility of a perfect storm coming up for Bitcoin in the medium term. He believes that during a crisis, every correlation gravitates towards the same direction.

Bitcoin live price
Btc
Bitcoin
$42.208
price
2.28223%
price change
BUY NOW

The low market capitalization had adverse effects on prices according to him. There was a rapid BTC price decline in mid-March when compared with the more traditional assets. Stop losses and automated trades also accelerated the high volatility phenomenon. But with the declining correlations, Bitcoin’s extended recovery will possibly boost institutional demand.

Stay up to date with our latest articles