The crisis has come and Bitcoin is falling – But what about Bitcoin after the crisis?
2 min read
Eleven years ago, practically since the birth of Bitcoin, everyone wanted to know how BTC would be doing in the next major crisis. It has not yet arrived, although the current state of stock markets is really bad. However, the current crisis tells us what it will look like in the event of a major economic crisis. Sales in the cryptocurrency market will come first, because coins are 95% speculative assets and holding something like this in times of crisis is crazy. People want security and Bitcoin is not (yet).
All right, but think about what is happening today. Today we have a pandemic of coronavirus, which has already managed to cripple the economy and send Bitcoin somewhere to a new low. But what happens when the corona leaves and hope and good mood returns to the markets?
Is it possible that Bitcoin will fire sharply and go up again faster than stock indices?
I see no reason why this should not be the case.
When the coronavirus leaves, the desire to buy will quickly return
I personally consider these drops to be temporary. It is still far from halving (56 days) and with the advent of warm spring days the coronavirus crisis will end (hopefully). Then the losses begin to count and investors look for the asset that has the greatest growth potential. Tens of billions of dollars will flow from 10-year US bonds back to stocks and various speculative assets.
And I personally can’t really imagine a better time for Wall Street investors to buy BTC. The whole market will be at the bottom and thanks to platforms such as Bakkt or CME, there will be no problem to invest in cryptocurrency in a regulated way.
Summary
Crypto will start to grow slowly and we can do a new high this year. Cryptocurrencies will lift adrenaline several times a year, even to the hodlers. Once by falling, sometimes by sudden growth. The market is either bored at the same price for three months, or jumps as wild. Well … and haven’t jumped more than now.
