Bitcoin Price Volatility, the Halving, and Bitcoin during COVID-19
Bitcoin has not been spared in recent global chaos.
The price of bitcoin plunged along with global financial markets amid COVID-19 fears, worsening, and overall turmoil. Bitcoin dipped as low as $3,600 on some exchanges, dropping around 50 percent from recent price ranges. Veteran trader Peter Brandt even said that the price of bitcoin could go as low as $1,000 or below… Still, he remains bullish overall about the world’s largest cryptocurrency by market cap.
Despite bitcoin’s sharp drop below $4,000, it has stabilized since initial financial market drops surrounding COVID-19.
As of writing, according to coinmarketcap.com, the price of bitcoin sits at just shy of $6,000. While the sharp drop can be largely attributed to broader financial market struggles due to the coronavirus, a good number of traders did predict a price drop prior to the upcoming halving.
A drop in the price of bitcoin could have been coming regardless of the impacts of COVID-19.
Of course, a potential price drop might not have been this bad. But, some theories are even floating that bitcoin miners had something to do with recent price drops.
Theories and analysis aside, it’s clear that bitcoin is not immune to the same FUD fear, uncertainty, and doubt that touches other assets.
With the halving coming up, global financial markets teetering on the edge, and people scrambling for cash, we may see a return to bitcoin maximalism and a spread of rhetoric for why bitcoin is valuable in the first place.
The halving reinforces the fact that there is a fixed and limited supply of bitcoin and it’s a reminder that we’re getting closer and closer to 21 million bitcoin mark (it’s still very very far off but you get the point).
Count down to the halving at TheHalvening.com and keep calm and HODL on if you own bitcoin right now. This is not financial advice, bitcoin is not necessarily a safe haven, etc. etc. etc., but more and more people are starting to recognize that bitcoin is an interesting and savvy way to diversify given today’s financial climate.
Thanks for reading! I am not an investment or financial advisor. This is not financial advice. All opinions expressed are mine alone. If you want more content like this, sign up for my weekly email.
