There has been a wide array of opinions about what bitcoin is doing throughout this pandemic. Some say it’s going to go up, while some say the downward spiral it’s been on for the past month is going to last until May’s halving.
What Will Happen to Bitcoin in the Coming Days?
One of the big opinions as of late is that bitcoin is the subject of a mass selloff – at least it was up until earlier this week. That explains why the world’s number one cryptocurrency by market cap fell into oblivion about two weeks ago. The asset dropped into the high $4,000 range from approximately $7,900. A fall of roughly $3,000 occurred within a 24-hour period, and it is widely regarded as one of the largest one-day drops in the currency’s history.
Many were selling their BTC and whatever other speculative assets they had as quickly as they could in the hopes that they could retain cold hard cash during these uncertain times. When the economy is in trouble, people tend to get rid of stocks, crypto and whatever else they possess to retain as much money as they can to stay safe and survive.
However, now the sentiment has changed quite a bit. Some cryptocurrency exchanges are reporting an influx of new bitcoin buyers and supporters, which could explain why the currency has incurred such a meteoric rise this week. At press time, the currency is trading for well over $6,800 and at one point late in the week, rose above the $7,000 mark temporarily – a good sign that BTC hasn’t lost its prowess.
Ari Paul – co-founder and chief investment officer of Block Tower Capital – explained on Twitter:
I haven’t seen this much organic new interest in bitcoin since early 2017 in my non-crypto circles… Got pinged by three separate old friends I haven’t spoken to in years about buying their first bitcoin yesterday.
The amount of new people entering the bitcoin space, he suggests, is reminiscent of what occurred three years ago. During that time, the currency rose to nearly $20,000 by the end of December, thereby beating all resistance and hitting an all-time high.
Many other platforms, including Bitfinex, Paxful and Luno, also report a huge surge in the number of new customers flocking to their services and buying as much BTC as they can. Many claim the coronavirus lockdown has a lot to do with it and are causing many new players to see BTC in a whole new light and give it a try.
The Currency Is a Form of Protest
Pierre Rochard – Kraken’s bitcoin strategist – explained in an interview:
With western government struggling to contain COVID-19 and forcing cities and nations into blanket quarantines, individuals feel an urgent need to get out of the centralized financial system. They can’t go protest in the streets, so they protest with bitcoin.