Last “Black Monday” led many to wonder whether Bitcoin’s price will rise or fall when the dust settles. If the coronavirus becomes worse, users need to know what could happen.
Last March 9th, humanity experienced a new “Black Monday”, where the world market went from being in the green to being in the red. Bitcoin (BTC) was also in the red, which leads to the question of whether the price of the cryptocurrency will increase or decrease once the dust settles.
Maybe the new coronavirus epidemic is not entirely to blame. However, many experts agree that it has allowed investors to realize the seriousness of the situation.
Oil prices fell by 30%, at the same time as Asian stock exchanges dropped by 6% to 7%. In the morning, the indices of the western world collapsed between 8% and 10%.
Thousands and billions of USD dollars disappeared overnight, not solely for the coronavirus but also for 11 years of virtually uninterrupted growth. The indiscriminate issuance of fiat money by both the USA and the European Union has characterized this period.
News reports on Latin America in recent years show that its traditional economy is not doing well. Everyone is undergoing a similar situation, from European savers suffering negative bank interest rates to Asian savers experiencing very low and even negative inflation rates.
Bitcoin is Getting Ready
Unlike the previous global economic crisis, humanity now has Bitcoin. However, it might still be necessary to prevent many people from losing their homes and life savings. This occurs due to the mismanagement of central entities, which play with users’ money as if it were theirs.
All the inhabitants of this ecosystem must try to save as much of it as possible. Something else that worries everyone is the fact that Bitcoin should be an alternative to the traditional system and the crises of the system.
Unfortunately, the main cryptocurrency has moved in unison with the trends of the traditional world market. Regarding the possibility that Bitcoin’s price will rise or fall, users need to know what to expect in the short or medium-term if the effect of the coronavirus becomes worse.
BTC will Fall
The last few weeks have been difficult for Bitcoin as the bullish trend that it showed earlier this year has collapsed. This may be particularly due to several factors regarding the mining sub-ecosystem, which could lead to a worse scenario in the short term.
These mining-related factors seem to suggest that Bitcoin may face an intense decline period as the long-awaited halving approaches.
The recovery of Bitcoin in early 2020 led the cryptocurrency from a low of USD 6,800 to a high of USD 10,500. This seemingly strong trend made many investors believe that the reason was the halving.
Data from the mining rolling inventory (MRI) showed that miners were not selling much in the market. This suggests that there were certain doubts about the market’s strength and liquidity despite its constant growth from a price perspective.
In the short term, expert crypto traders are pointing to USD 7,700 as an important point of resistance that could rescue Bitcoin from an even worse fall.
By Alexander Salazar