Bitcoin may be going through some heavy turmoil as of late, but its believers are still hovering in the background waiting for it to accomplish big things.
Bitcoin Is Still Likely to Accomplish a Lot
Thanks to growing fears of the coronavirus, bitcoin has seemingly fallen heavily over the past few weeks, dropping from about $10,500 in mid-February to roughly $8,300 by the end of the month. Over the past week, positive news has permeated the space, allowing the currency to recuperate somewhat.
Among the news to emerge is India agreeing to relieve itself of the bitcoin ban that was implemented in the year 2018, and South Korea implementing new cryptocurrency legislation designed to make it far more legitimate.
Following all this good news, the currency rose to about $9,100, though it has since dropped again and is trading in the high $8,800 range, thereby losing almost another $300 from its recent surge. However, analysts still claim that bitcoin has jumped about 26 percent since the beginning of the year. All the while, traditional markets – such as stocks – continue to fall heavily due to the global panic.
By contrast, some are claiming that this latest bitcoin maneuver has little to do with the coronavirus but is rather in anticipation of the big halving that’s scheduled to occur this coming May. They claim that bitcoin is likely to behave in a much more volatile manner over the next two months prior to the event occurring.
One such person is Mostafa Al-Mashita of the Canadian crypto enterprise Secure Digital Markets. In a statement, he explains:
It’s a relief rally. In my opinion, we have a likelihood of sweeping another low before the post-halving rally.
Many anticipate that the halving is likely to send the world’s number one cryptocurrency by market cap to the moon. In the past, every time bitcoin has experienced a similar event, the price has immediately shuttered forward. The halving lessens the amount of block rewards that can be garnered by cryptocurrency miners, thereby making the asset in question – in this case, bitcoin – much rarer and more valuable.
It’s Still a Safe Haven
Some are not worried about the present circumstances, and believe bitcoin is on the verge of getting the attention it deserves. Henrik Kugelberg – a crypto OTC trader in Sweden – states:
I believe gold and bitcoin are safe havens. As coronavirus has just started to spread, I believe a strong market will last well until the halving will have effect. To me, it is plausible that we can hit an all-time high this year, perhaps within six months.
Some, like Tim Draper, are likely to agree. Draper, a venture capitalist, recently claimed that the price of bitcoin could hit the $250,000 mark by the end of this year.