Some cryptocurrency experts have speculated that the market crash brought about by the COVID-19 global pandemic could actually reduce the risk of BTC price dump post the Bitcoin halving.
In a webinar discussion among top crypto experts, Chris Bendikson, Head of Research at CoinShares expressed his opinion about the possible crypto scenario post Bitcoin halving.
He believes that miners have already prepared themselves for the halving following the price crash in March. As a result of which there will not be much of an impact on their profitability, and the situation has compelled miners with backdated equipment to either drop out or upgrade.
Chris Bendikson thinks that there could be a slight volatility post the halving for a few months, but post that, the mining industry will find itself in a strong position with a low-cost base.
He went on to add, “What that means is that miners are likely to not have to sell as high of a proportion of their mined coins as before the halving and the actual halving, when you add that to this, means that we’re potentially about to see a midterm bullish virtuous cycle in the making.”
Importance of Bitcoin Explained
Alex Laughton-Scott, Associate Director of CoinShares, on the other hands seemed pretty optimistic about Bitcoin. He opined that this is a perfect time for the world to understand and acknowledge the importance of Bitcoin, its uses, and its benefits.
He said that the post-COVID-19 Bitxoiun scenario could be a really bright one, and this period when the world is under a lockdown could well serve as a ‘brewing period’.
Scott stressed on the fact that, amid any sort of crisis, ‘all correlations go to 1’. He explained that the price dump in March was further enhanced by stop losses and automated trades, apart from the low market cap, which eventually led to high volatility.
However, he is also optimistic about the fact that these correlations will eventually drop, and as they do, the institution will realize how crypto can fetch massive benefits during crises.