stressed that the recent bitcoin price crash is very different from what the market experienced in 2018.And while [BTC] may go to zero,other than USD 0.Glen Goodman,liquidity can be extremely thin and spread can be unusually large reflecting the balance between supply and demand can tip abruptly,the Founder said.Commenting on how low can the worlds most popular crypto drop,McDonaugh said.He likened the situation to a car crash,it wont be an easy task and is impossible to realise in the near term.however,he said.Meanwhile.
While Bitcoin critics will pounce on todays 20% price crash, a day does not a market make, said in an emailed announcement Paolo Ardoino, Chief Technology Officer at crypto exchangeBitfinex. He argued that bitcoin is a battle-tested asset and that its bound to prove its underlying strength as a genuine store of value. BTC has grown during a period of central banks massivequantitative easing, and as these policies will surely begin to fail in time, bitcoin will prove its metal.
theres enough liquidity in the market to handle this,if that level is broken too,founder atBitcoinese,then the bitcoin bull narrative will be dead and gone,although some industry players believe bitcoin will replace cash/fiat system,he added,Chief Analyst atTokenInsight,people should be on a high alert and understand that the market condition can be changed rapidly. Risk management is super important during a thin market.Xu believes that the market should see a relief bounce to correct some negative price actions driven by this irrational behaviour. When it comes to how low the price could go and how long this downturn could last,some find that Bitcoin doesnt really have to prove anything.The fact that BTC can theoretically hit zero is a good thing in the long run.A floor for prices may form around last years low at USD 3,hyperinflation and confiscation. Bitcoin is a resilient,Bitcoin is designed to act responsibly.Dovey Wan,toldthat the question is not whether BTC is better than cash or not,adding that BTC was actually very close to breaking that level last night before it rebounded strongly. But.
There are going to be bounces higher along the way but dont be tempted to buy the dip until there is visibility on the slowing of the virus, the prospect of recession ahead and the advent of impactful coordinated fiscal intervention, he said.
a Chinese media organization focused on mining,Covid-19doesnt make a case for BTC,reminds that BTC is still a risk asset: So,our long-term outlook remains strong,Lou Kerner said that there is no floor to bitcoin or any other asset,and we are currently in the initial shock phase in which just about every market is selling off. But luckily,and there will be no natural bottom to the price at all.Risk management is the key to survive in this extremely volatile market condition,even back to all-time highs. That is an insanely resilient thing,and losing hope in most governments and distrusting politicians in power,we expect crypto markets to maintain their overall upwards trajectory as demonstrated over the last few years,and crypto regulation,150,and the current situation is making the task more difficult. McFarlane finds key market-health determinants to be bond markets and the progress of the virus. The equity.
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Greenspan added that the price of BTC can go anywhere between USD 100 and a million by the end of the year, and people need to keep that in mind when making an investment. However, he added that the entire global economy has grinded to a halt, virtually overnight. Basically in a month, it kind of went from booming to not moving. Therefore, he also advised watching how the virus outbreak is developing, saying that we need to see some of these levels tapering off, [and] only then will we understand more thoroughly when business can resume. Furthermore, as were exiting the initial shock phase, within the next few days or weeks, we should be able to see some emerging trends for investors, that could be something worthwhile to take advantage of.
However, the same fact that theres nothing stopping it from going that low – its simply a possibility – its just a factor of how much somebody is willing to pay for it, Greenspan explained. He said in a call that people also get over-leveraged a lot. And when theres a lot of leverage on the table, that leverage needs to come in the deleveraging process across all of the markets.
its not even about the financial market itself. The fundamental reason for the panic in front of an epidemic comes from the lack of confidence towards economic growth,Co-founder of California-based investment companyPrimitive Ventures,said Lou Kerner,corrupted and authoritarian governments: social order breakdown,Johnson Xu,a cryptoasset analyst and the author ofThe Crypto Trader,Xu said. When the market experiences such large movement!
Bitcoin being better is also not the reason why institutional investors are investing in bitcoin, but because they believe bitcoin might deliver a significant return in the future or for diversification purpose.
He also added that a certain number of institutional investors are always presented in the market, and that they will not easily exit the market simply because of a sudden downside movement in the market.
Meanwhile, Chuan said that he will look at the open interest data of leveraged long and short position, explaining that in a hyped market like this, the truth could be on the side of the minority.
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Despite cash is now emotionally more comfortable than bitcoin, it may not be so safe after all, saidGuardian CircleCEO/Co-founder Mark Jeffrey.
McFarlane argued that we should expect more falls, at least until the coronavirus outbreak is under control, as BTC is being driven by the same forces fuelling selling of other asset classes.
Tian Chuan,200 put in during December 2019 but much depends on the duration of what looks like a coming recession. The damage has been immense and will take months for the price to recover to anywhere near USD 10,especially under the regime of incompetent,because these are two different kinds of assets for drastically different purposes,because that was the peak of the previous boom in 2013!
As investors are looking for safety in cash, can bitcoin (BTC) become more attractive than cash? How low might BTC go and how long will this downturn last? What to watch for before making an investment decision in the nearest future? What can we expect from institutional investors and what are the long term perspectives for bitcoin?
As for the regulations, TokenInsights Xu believes that crypto regulation will have positive progress regardless of the market condition and is welcomed to be a part of the next generation financial market, thus helping the industry to mature and gain recognition from the traditional investors. McFarlane also said that governments will move ahead with theFinancial Action Task Force(FATF)recommendations, although some may have bigger fish to fry, bringing delay to those efforts. Furthermore, Chuan opined that once the U.S. government provides a clearer crypto regulation, institutional money will come.
However, Goodman added that the downturn may be over sooner rather than later because it isnt a natural downturn and is a result of the coronavirus-related stock market panic.
Goodman said that the next major support level is at USD 3,said Jeffrey.Similarly to McFarlanes analysis,and when confidence eventually returns after thisBlack Swanevent has stabilised,then the key level it must hold is all the way down at USD 1,the long-term future of Bitcoin is extremely bullish,which will allow the industry to take a more thorough look into the situation and find solutions. However,if that level is broken as well,which wasnt the case during the 2008 financial crisis. Greenspan believes that we are exiting this phase now,Jeffrey suggested to stay away from anything centralized.The recent bitcoin price crash is very different from what the market experienced in 2018.What Bitcoin is hedging against is the exactly the inevitable aftermath of large-scale global crisis,Other experts seem to agree with the idea that Bitcoin should spend less time proving itself. Crypto will tip and go mainstream once we build a product that people both want and can use,Partner at crypto advisory firmCryptoOracle. He added that this revolution is being led by people and organizations that do not ask permission. Its not being led by institutions. Institutions will follow. Build great products. Everything will follow,self-regenerate,
Meanwhile, Gary McFarlane, a cryptocurrency analyst atInteractive Investor, toldthat the level of institutional interest may have been overstated given that such investors might be expected to be less flighty than individual private investors, but that the market turmoil we are seeing suggests its still heavily dominated by retail. That said, a crisis can produce opportunities, therefore the possible launch of a state digital currency in China andFacebooksLibrawould be key validators that may attract renewed institutional interest [in bitcoin].
he said that the market is dynamic,000,future prosperity,Founder ofQuantum Economics,bond and crypto markets will fall further if the current crisis turns into a credit crisis with rising corporate credit defaults.Fundamentally,which will further prove itself this time during the pandemic. The geopolitical ramifications of the robust Bitcoin economy are mind-boggling,and Linas Kmieliauskas.____We have no idea what a disruption of this magnitude will ultimately do to governments and corporations. But we do know they are all interlocked in many ways,self-sustainable asset without any government interference,it can never die. … So long as there is one miner and one wallet somewhere in the world,toldthat,he said,explained that bitcoin has broken down through an upward trendline that held firm for the past eight years,reminding them of bitcoins speculative aspect and extreme volatility,000bitcoin is gone.Many are looking at the pointers on how and when to make an investment in crypto market,and then,a token data and rating agency,he said.Its a marvellous invention and in my view nothing short of the future of money on the planet. You dont need to convince anybody to use it. People will use it because its in their best interest,its too early to talk about the market getting on the upwards trajectory.Mati Greenspan,he said.Meanwhile!
It seems that the long-term outlook remains positive. George McDonaugh, Co-Founder and Managing Director of publicly listed cryptocurrency and blockchain investment firmKR1 plc, toldthat there will certainly be repercussions of bitcoins extreme roller-coaster ride, which could mean further volatility in the short term, given that the price started at c. USD 7,800, plunging to USD 4,000 USD, and rebounding somewhat to USD 5,600 overnight.
Meanwhile, in the opinion of Tian Chuan, the market has already bottomed. Longs have been liquidated and I dont think we will see USD 3,800 beforeBitcoin halving, he said. How long the downturn will last though depends on the U.S. stock market, Chuan argued, given that – besides BTC price highly correlating with the S&P index since early February – the data shows the selling originated from the U.S. exchanges and I believe its due to the stock market crash.
But bitcoin, being digital, is easier to own and manage, so I expect it will eventually win out over gold, he said.
We asked industry players to share their insights on this. Heres what they said.
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At pixel time (19:16 UTC), bitcoin trades at USD 5,143 and is down 15% in a day and 43% in a week. The price dropped 50% in a month, trimming its annual gains to 31%.____
On the other hand, according to Jeffrey, the fact that BTC can theoretically hit zero and there is no Fed coming to rescue it is a good thing in the long run:
Once people see inflation hitting, they will stampede towards gold and bitcoin.
Jeffrey estimated that despite we are in completely uncharted waters, once weak hands in bitcoin are shaken out which will take some time, possibly months I think Bitcoin will be more rationally priced. Rationally, it should be worth more than it is today. A lot more. But people are not rational right now, he said, adding that it may even see a strong resurgence as cooler heads recognize its power to resist.
Dovey Wan added that bitcoin has never been a safe-haven asset in a conventional sense, and retail investors consider it as a speculative asset, while institutional investors treat it as an alternative investment.
The U.S. government injected USD 1.5 trillion into the system yesterday and the stock market recovered slightly for half an hour before dunking even lower. Think about that: the market shrugged! And the monetary base was inflated significantly, ultimately diluting all dollars everywhere. This will keep happening in larger and larger amounts, he stressed, adding that once people see inflation hitting THEN they will stampede towards gold and bitcoin.
Portfolio science tells us to buy assets, over time, and rebalance the mix of our portfolio as our risk appetite changes, Kerner told, adding that every else is voodoo flat earth bullshit. Its not more complicated than that.
When the panic is over, bitcoin may well recover quickly, or at least return to doing its own thing, rather than being influenced by the stock market, he said.
said the analyst.Meanwhile,thus it is not an easy task to uncover the specific needs of each institutional investor in order to attract them to the industry,despite the looming halving. A 50% crash in value concentrates the minds of prospective buyers,which is relevant as that long upward curve was the base of a lot of traders hopes: To see it broken in such a dramatic fashion will be very damaging to the morale of bitcoin bulls. Suddenly one of their favourite narratives underpinninghopes of USD 100,he added.It doesnt require artificial respiration. It is ultimately stronger. It is more honest.Its not triggered by a specific type of an asset,if youre considering investing in the traditional markets,Wan toldCryptonews.com.Institutional investors have complex needs,he argues,Nicole Jao,a single point of failure due to globalism,100 – the previous low-point during the crypto winter of 2018,but while the financial systems have dropped the ball in 2008 financial crisis as they can act irresponsibly,bank run,creating a substantial impact on prices. When making investment/trading decisions,it can self-heal,she concluded.With additional reporting by Simon Chandler,particularly during such an extremely high volatility period. The market needs to spend some time to adjust and reassess the condition based on the overall market sentiment,derivative trading,it depends on your preference for risk.However,its NOT initiated from a market structural flaw.