Experts from Fundstrat, eToro and the blockchain technology company Blockstream consider Bitcoin could recover its path to be worth more than USD 10,000.
The price of Bitcoin could increase during the next months, despite the ongoing crisis that the coronavirus pandemic caused. Last February 8th, miners sold each bitcoin (BTC) for USD 10,139. However, on March 13th Bitcoin’s price fell below USD 5,000 for the first time since April 2019.
The World Health Organization (WHO) declared coronavirus as a pandemic on March 11th. The announcement caused the fall of the most important stock markets in the world. The price of Bitcoin was not far behind from this situation. The fall of this cryptocurrency comes after the US stock markets plummeted. All of this happened in a day now compared with the ‘Black Monday’ of 1987.
But the Chief Strategy Officer of Blockstream, Samson Mow, predicts that Bitcoin’s price will be above five figures for halving this May. “Bitcoin at least 10k by the halving”, the expert commented last March 19th on his Twitter account.
These positive predictions would help boost Bitcoin’s price as well. But one of the factors that could be driving the price hike is the injections of liquidity that some central banks of the United States of America and Europe already execute.
“Within less than a day of the two largest central banks in the world printing a combined $2 trillion of their paper money, Bitcoin’s price surges +20 %. Bitcoin is working as designed”, a crypto user commented on Twitter.
Fundstrat and eToro Predictions
David Grider, Fundstrat’s Chief Digital Strategist, and Simon Peters, eToro’s Platinum Account Manager, discuss how the coronavirus disease and the financial crisis may affect Bitcoin halving and Bitcoin prices shortly.
Unlike Chainalysis, David Grider believes that professional traders and investors are not solely responsible for recent major price movements. “I think we have seen an addition in 2016/2017 of a class of traditional funds, probably institutional, to some extent but not very big, right. But before that, this was a very small market and I think it’s still dominated by the first largest cryptocurrency whales”, he explained.
On the other hand, Simon Peters highlighted that the liquidation of the professional participants’ positions generated a fall in Bitcoin prices, especially during the last two weeks. Besides, he explained that this activity could allow Bitcoin to become a hedge asset.
“We have seen this conversion of assets into cash, regardless of the market it is in, but there will come a time when, due to this increasing amount injected into the system, cash will lose its value”, he explained.
Peters added: “Given that the virus is shrinking and the number of new cases are decreasing, the question for investors is, what do I do with all this money I have? And then they can look for other assets that can cover that, possibly taking cryptocurrencies as one of them”.
Bitcoin’s volatility increased due to the uncertainty that the coronavirus outbreak generated in international markets, but its price could become more stable when the pandemic ends and that is what crypto experts are predicting right now.
By María Rodríguez