Big Players And Investors Turn To Bitcoin Amidst The Coronavirus Pandemic
The crypto market looks pretty bloody today following the recent Bitcoin crash. Bitcoin was lingering around $7,000, and more analysts were expecting to see a rally.
At the moment of writing this article, Bitcoin is still trading in the red, and the most important coin out there is priced at $6,888.42.
Interest in Bitcoin is on the rise
It’s been revealed that there’s an increasing number of hedge funds and high-net-worth individuals are investing in Bitcoin in the wake of the financial hit triggered by the coronavirus pandemic, says Mike Novogratz, as cited by the online publication the Daily Hodl.
He told Bloomberg that increased adoption and pandemic-related economic measured that are taken by central banks are all suggesting that this is the time for Bitcoin.
“The risk on any store of value, if it’s gold, is that enough people believe in it. It’s still a question of adoption. I’m just seeing more adoption here in the U.S. and in Europe than I have literally since I started this.”
Novogratz said that he’s expecting the price of Bitcoin to double in six months.
“If it doesn’t go all out by the end of the year, I think I might just hang my spurs. Because if it doesn’t go up now, you know, I’m not sure when it will…” he said.
Novogratz continued and explained that “We should have doubled within six months, we really should have. This is the time, maybe within the end of the year.”
Bitcoin halving is around the corner
The halving event is scheduled to take place in May, less than a month from now.
There have been all kinds of speculations about what will happen with the price of BTC following the halving, but the most common claim is that BTC will embark on a massive rally.
On the other hand, a lot of miners will capitulate as profits dry up, and they still have the most of the BTC holdings, which help them cover the costs.
Following this selling pressure is increased, and a drop in the network hash rate will occur.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.