Opinions on Bitcoin Crash: what next?
Brian Armstrong, CEO of America’s largest crypto-currency exchange Coinbase, says he’s surprised about the massive Crash of Bitcoin in the midst of a global financial crisis. The long-standing crypto-entrepreneur said he would have bet that BTC would rise in the Wake of the consequences of the Coronavirus outbreak.
Crypto enthusiasts have touted the BTC, increasingly, as a Form of digital Gold, which could possibly withstand economic turbulence. The current downturn, which has shaken the stock market, but also the crypto market to the test. The experienced financial analyst John Bollinger, who developed the technical analysis tool of Bollinger bands, also said that he was disappointed by the performance of BTC as a supposed hedge. He expected that BTC would act as a safe haven, and was surprised when the crypto-currency sank.
Bitcoin fell COVID-19-panic. I saw this coming, I thought it could act as a safe haven.
The Economics editor of Bloomberg, Joe Weisenthal, said he was not surprised by the crash of Bitcoin at all, and refers to the Power of human panic.
When people are in a panic, they liquidate everything that is in sight, so that you can pay for your Fiat denominated accounts.
As a Bitcoin fell on Monday below $ 8,000, confirmed the Nobel laureate Nouriel Roubini, the leading crypto-currency is performing worse now than global equities.
Another proof that Bitcoin is NOT a good hedge against risky assets in the risky episodes. In fact, it falls during the risk period more than risky assets. The BTC is so cases, a fucking Shit-Hedge-currency risk.
The Analyst Jacob Canfield offers the view of the optimists: The Performance of Bitcoin remains to 2020, faster than most traditional investments.
I am actually quite proud how #Bitcoin has responded to this market crash. Still up on the year will the stock market is down 15%. pic.twitter.com/6FqKNQzdvB
— Jacob Canfield (@Jacob Canfield) March 9, 2020
Stock-to-Flow model is more bullish
The Analyst and the inventor of the Stock-to-Flow model, PlanB, says that he feels the bearish Bitcoin price action is concerned. He remains in relation to the long-term prospects of the leading crypto-currency to be optimistic. His Stock-to-Flow-model (S2F), according to the is used to predict the price movements of Bitcoin say, is the popular digital asset is still on the way, to achieve before December 2021, $ 100,000.
#bitcoin S2F chart adjusted for today’s “crash” … nothing really happened, btc is still spot on S2F track pic.twitter.com/7bIaZpWgLB
— PlanB (@100trillionUSD) March 8, 2020
The Stock-to-Flow model of PlanB is based on the historical correlation between the available supply of Bitcoin and the number of newly-minted Coins that come on the market. In the past, the Halving and reducing the Block Rewards strong Bitcoin bull markets preceded. The model of PlanB assumes that Bitcoin will start to rise after the Halving in may 2020 and again. Although the Analyst sees the Halving as a Game-Changer for the dominant crypto-currency, does not share a well-known Bitcoin whale, as Joe007 known, this point of view.
Joe007 from December 2019 till the end of January, $ 20 million of net realized Gain on Bitfinex, says he believe that the Miner with the Halving are always overwhelmed and more.
Yes, you are betting on a ‘halving rally’, Yes. You are betting in a big way, in the amount of hundreds of millions of USD, borrowed against BTC collateral. But what if you… (lie panting) wrong?
Translation: over leveraged miners are going to be unbelievably fucked-come-halving. And people are cheering on. I can’t even… https://t.co/cell0IXGSN
— Joe007 {I identify as underrepresented minority🐳} (@J0E007) March 8, 2020
While the debate about the halving will continue to increase, offer leading analysts, increasingly, their view on the Event. Meltem Demirors of CoinShares said that she believes that the increasing institutionalization of the historically strong Halving Halving could effect nothing. Meanwhile, new studies of the crypto-Analytics company CoinMetrics Recently come to the conclusion that the Hype about the Halving itself could trigger a price rally for Bitcoin.
Featured Image: Anucha Cheechang | Shutterstock