Bitcoin’s price movement has been a focal point of discussion within the cryptocurrency ecosystem since its inception. As the world prepared for the spread of Coronavirus, cryptocurrency proponents took no time to discuss the future of the world’s largest digital asset.
Michael Novogratz, the founder of Galaxy Digital Investments recently took to Twitter to discuss the predicted movement of Bitcoin and how it would perform in 2020. This was in the midst of a severe market crash that saw mainstream stocks plummet drastically.
Novogratz admitted Bitcoin will remain volatile in the coming months. In connection with many countries, this was due to the rapid spread of Coronavirus. Recent reports claimed that the number of people infected crossed the 350,000 mark with new countries naming victims on a daily basis.
Over the past couple of weeks, Bitcoin has gone through some of the wildest weeks in its history. The cryptocurrency had fallen by almost 50 percent in the past month and then climbed by 25 percent in the span of 24 hours.
This was the first time since the start of 2019 that Bitcoin has gone through such a volatile shift in prices. Although markets across the world had fallen through multiple supports, cryptocurrency proponents were still bullish about Bitcoin’s upcoming journey.
The analysis showed that Bitcoin’s dip would occur when quantitative easing is implemented into the mix by financial regulators. Bill Barhydt, Abra’s chief executive, expects a further $5-10 trillion to be printed as new money globally. Rapid printing was one way in which the Fed aimed to increase liquidity in the market affected by the Coronavirus spread.
Experts believed that during the time of inflation, Bitcoin’s prices would rocket up. The price increase may open a window where Bitcoin and gold are put in the same bracket. Another reason why supporters like Novogratz and Barhydt were bullish about Bitcoin’s price increase was the upcoming halving. Abra’s latest release said:
“The new supply of Bitcoin created every month is about to be cut in half. This is going to be a big shock to the mining community as well as the investment community and hasn’t been priced into Bitcoin at all in my opinion. Given quantitative easing’s effect of pumping out massive amounts of cash and driving demand for deflationary assets there simply won’t be enough Bitcoin to go around. This could lead to an explosion in Bitcoin’s price.”
One key factor for Bitcoin’s expected growth was its increasing awareness among the masses. People have started looking at digital assets as an alternative to a failing fiat system across the world. The Euro is at risk while the dollar was being threatened by an increasing inflation rate. Bitcoin has the possibility to build a solid foundation in the financial space if it continues its onward march.
Several crypto companies have also started giving users the option to earn in cryptocurrencies, thereby integrating them into transactions. Abra was one of the companies taking this initiative with the sole aim of pushing Bitcoin into a bigger macro-financial ecosystem. The Abra CEO did not fail to mention that before Bitcoin could rise to monumental highs, the possibility of a fall to $3000 was not far-fetched.
At the time of writing, Bitcoin was trading for $6691 with a total market cap of $122.34 billion. A 13 percent increase over the previous day resulted in int he 24-hour market volume to rise to $53.171 billion.