What the future holds for Bitcoin: expert opinions
The quantitative easing policy of central banks together with the upcoming halving will become a powerful catalyst for the growth of cryptocurrencies
The cryptocurrency market is on the verge of rapid growth. At least a large number of experts, analysts, and traders are convinced of this. The blame is the economic crisis, the fall in oil prices, the pandemic, and the halving of the “first cryptocurrency” scheduled for the middle of this month.
The closer the “halving of the first cryptocurrency”, the more experts make predictions about what awaits the industry after it. In an interview with Cointelegraph, crypto investor Charlie Schrem said that he supports the opinion that the quantitative easing policy pursued by the world’s leading central banks, coupled with the upcoming halving, will become a powerful catalyst for the growth of cryptocurrencies. He also added that the surplus of cash in the hands of residents of the United States, which came to them as a result of direct government distribution of money, will ultimately be invested in the cryptocurrency market.
He did not forget to mention the miners who will be forced to reduce the selling pressure due to the halved reward for the mined block in the Bitcoin (BTC) network. “Halving during the coronavirus epidemic is just crazy, a real black swan,” he said. At the same time, Shrem clarified that he did not believe that the effect would be lightning-fast, and cited as an example the previous halving, which took place in 2016. The investor stressed that the “first cryptocurrency” took about 16 months to realize the potential.
What the future holds for Bitcoin: expert opinions
CoinShares Development Director Meltem Dimirors echoes him. In an interview with Cointelegraph, she stated that the negative oil prices, which the market saw not so long ago, turn the whole understanding of the concept of market risk upside down, which, in turn, can strengthen the position of Bitcoin (BTC). She noted that the execution of the May contracts for WTI crude oil at prices below zero forever changed the world of investment, and a return to the previous, pre-crisis times is impossible. “We are not just witnessing the change in oil prices. We are witnessing a rethinking of the entire energy value chain, ”the events described above-prompted Demirors to this conclusion.
In turn, geopolitical interest in energy will fade away, and it will intensify in relation to “computing and communications.” She cited China as an example with its leaps and bounds towards the implementation of blockchain and 5G technologies in the real economy. “There are a large number of people who consider bitcoin the best insurance against a systemic collapse of the entire financial infrastructure, but they contradict themselves if they do not store cryptocurrency in cold personal wallets,” she added.
The CEO of Pantera Capital wrote to investors in which he said he believes the value of digital gold will rise to $ 115,000 by August 2021. He backed up his arguments with calculations that indicate that Bitcoin (BTC) always bottomed out about 460 days before the halving, and the rally following the halving lasted 445 days on average. “In this market cycle, the market actually drove Bitcoin (BTC) to the bottom 514 days before the event. If history repeats itself, bitcoin will peak in August 2021, ”he stressed.
Regarding the market situation last week, according to the authoritative cryptocurrency analyst Joseph Young, during the sharp rise in the price of the “first cryptocurrency”, which took place at the beginning of last week, most large traders recorded their profits at around $ 9,400.
This mark became the line of the most powerful resistance, hitting which, “digital gold” fell slightly. “During my conversations with representatives of several OTC firms, I learned that a record amount of BTC was sold at a price above $ 9,000,” he said.
It is worth emphasizing that the increased activity of sellers was also noted on Binance and Coinbase, which are the favorite platforms for retail investors. This allows us to conclude that it was not only the major players who were active. Meanwhile, in anticipation of market growth, the aggregate capitalization of stable cryptocurrencies (stablecoin) against the background of the onset of growth in the cryptocurrency market came close to $ 10 billion.
At the same time, the share of the most popular of them, taking over 84%, Tether USD, continues to grow. But not everything is so smooth. Stable cryptocurrency Tether (USTD) was called “African trinkets” by analyst and trader Peter Brandt. He made a statement that he considered this tool extremely unsafe. “I believe that only dimwitted investors keep funds in Tether. To brand a fiat dollar and use USDT is a laughing matter, ”he stressed.
Brandt noted that using USDT for tax evasion is futile since it still does not allow US residents to avoid the close attention of the IRS, and added that USDT holders eventually become hostages of their trust in an unregulated exchange. jam with no one knows the real balance of payments.
Over the past seven-day period, the total capitalization of the cryptocurrency market showed growth, which amounted to 10.81%. On Wednesday morning, May 6, 2020, it amounted to $ 248 billion against $ 223.8 billion at the end of the last seven-day period.
- Bitcoin (BTC). On Wednesday morning, May 6, 2020, the price of digital gold was $ 8,919. Over the past seven-day period, the value of the “first cryptocurrency” increased by 14.71%. The market capitalization of Bitcoin (BTC) increased by $ 21.2 billion and amounted to $ 163.8 billion. The share in the total market capitalization increased by 2.3 percentage points and amounted to 66% at the end of the last reporting period.
- Ethereum (ETH). On Wednesday morning, May 6, 2020, the price of Ethereum (ETH) was $ 205.76. Following the results of the past seven days, the cost of digital oil has grown by 4.24%. The share of Ethereum (ETH) in the total cryptocurrency market capitalization over the week decreased by 0.58 percentage points to 9.20%.
- Ripple (XRP). On Wednesday morning, May 6, 2020, Ripple (XRP) was worth $ 0.216. The Ripple token rose in price by 12.43%, and its share in the total cryptocurrency market capitalization over the week fell by 0.25 percentage points to 3.86%.