Bitcoin And Crypto Turnaround Predicted In Two Months For These Reasons
Bitcoin is now down by almost 28% amid a massive market pullback that’s triggered by the coronavirus global panic and other factors.
At the moment of writing this article, the most important coin is trading in the red, and BTC is priced at $5,303.33.
Predictions are quite dark these days, especially in the short term.
The global disaster is far from over
Jehan Chu, who is an exec at the blockchain hedge fund and venture capital company Kenetic Capital said that the drama is far from over.
“Macro dominoes are falling to create a chain of negative sentiment, which is, in turn, triggering a sell-off of crypto.”
Alex Kruger believes that the WHO declaring a coronavirus pandemic is like saying officially that we’re in a bear market.
Investors could flock into the crypto industry
Chu said that the virus and the global economic weakness are offering a solid case for investors to flock into the crypto industry.
He is also optimistic about the upcoming halving, which will reduce the amount of new BTC that’s entering the market in May.
Bitcoin may bounce before the halving
Under these circumstances, Chu believes that Bitcoin may bounce before the event.
“A similarly rapid turnaround and appreciation is equally anticipated on the way to higher levels leading into the halving.”
CEO of market analysis firm Global Macro Investor agrees with Chu and believes Bitcoin has more room to fall.
“It feels like any hedge fund that was long Bitcoin is having to liquidate. VAR [value at risk] takes no prisoners. (For those new to VAR it is the measure of risk in a portfolio and is connected to volatility, so as volume goes up of all assets, they have to reduce risk).”
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.