Bitcoin tries to stabilize above $7000 level

The volatility in the crypto markets increased over the past few days and the bitcoin weakened to trade below the $7000 level, which raised doubts in the crypto community that the currency will continue to decline, especially as it was able to withstand over the past five weeks and rose to the level of $ 7400 it recorded at the time previous transactions.

Bitcoin is currently weakening amid expectations of further decline, and some analysts believe this is as a result of the crashes in the oil market after the May WTI futures contract fell below zero for the first time in its history, which deterred investors from risk in the markets and increased They buy the US dollar as it is the most liquid currency in the world.

Halving Happened and Its Expected Impact on the Bitcoin Price

Despite the turmoil in the financial markets, the losses incurred by the bitcoin currency IQ option Over the past couple of days it has been limited, as investors are looking forward to an important event which is the halving. We still have only three weeks of the third halving event, as they expect it to be followed by big Bitcoin rally.

Bitcoin

In three weeks the number of Bitcoin equivalent to mining will drop from 12.5 BTC to 6.25 BTC, after the past two halvings it has been observed that Bitcoin is taking a huge bullish trajectory so Bitcoin is expected to rally strongly after the third halving event.

But at the present time, with the outbreak of the Corona virus epidemic, the feelings of investors have become conflicting, many of them have become unenthusiastic and optimistic about the halving event, and others have an optimistic vision about the future of Bitcoin after the halving, because the Corona virus pandemic has given unprecedented opportunities to control all areas of life, as it raised Many governments in the world have taken strict precautionary measures to address the outbreak of the epidemic, and this has affected the financial markets and the crypto market, which has suffered extensive losses, the largest in decades.

If Bitcoin does not rise as high as previously expected, many Bitcoin supporters may be let down by the opportunity they have had for the past four years waiting for the halving to happen, and if not, a general economic depression could send Bitcoin into its first bear market in its history. Absolutely.

Bitcoin outperforms stocks during the coronavirus crisis

Experts compare the performance of Bitcoin, stocks, gold and Treasuries during the coronavirus pandemic corona, They concluded that Bitcoin was a better performer than stocks but worse than gold and US Treasuries, and experts attributed this to speculative bets and offers to hedge against inflation linked to stimulus measures.

Bitcoin showed a strong recovery after the unprecedented stimulus measures taken by many governments and central banks in mid-March to reduce the economic damage from the spread of the Corona virus, as the world's leading cryptocurrency achieved gains of more than 90% since mid-March.

There are some optimists who see Bitcoin as immune to geopolitical tensions due to its decentralized nature, but during the year 2020, Bitcoin has performed worse than traditional safe havens such as gold, which rose by 11% and US 10-year Treasury bonds, which rose by 14%, in contrast, Bitcoin tumbled by about 40% is in its worst daily loss since 2003.

 

Mohamed Abdel Khaleq
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