Bitcoin has been pulling back over the past few days to trade in the $8,800 range and the limited downtrend is expected to continue for a while to test $8,400 and $8,500 levels, but the crypto market is unlikely to witness a sharp sell-off.
Over the past week, Bitcoin lost more than 10%, the total market value of cryptocurrencies lost about $23 billion, and the Bitcoin Dominance Index fell by 1.5% to reach 65.5% during the past week, the decline in the Bitcoin Dominance Index does not mean bad news for the crypto market. XM Arabia Because it confirms the growth of demand for other digital currencies.
Bitcoin is the best performing currency in the world 2020
The year 2020 has proven to be positive for Bitcoin so far, with rising tensions between the US and Iran the leading cryptocurrency behaved like a safe haven asset and rose from the $7,200 level to above $10,000 in mid-February, after which all global markets were in turmoil with the outbreak of the Corona virus pandemic. This pushed Bitcoin to fall to the $3800 level in mid-March, but in nearly two months it was able to recover and recover all the losses it lost to trade above $10,000 again.
But it currently needs a strong price support especially after it tested the $10,000 level and fell again to currently trade near the $8,800 level again.
The third half happened in unparalleled circumstances
The world's most famous digital currency has entered a new era after the last halving, and it seems that it will be different as it enters into an entirely new financial system. With prices reaching half a million dollars.
Despite this, many focused on analyzing bitcoin based on trends following the first and second halves that saw bitcoin's price rise in the year following 2012 and 18 months later in 2016.
The event of the third half lived in unparalleled conditions, as it came in the wake of a severe global crisis that may be worse than the global financial crisis in 2008 and the expanded rescue plans by central banks around the world, and this means that it is an unprecedented expansion in the money supply as it was printed about $3.9 trillion which is equivalent to 6.6% of global economic output since February which could lead to higher inflation, which increases Bitcoin’s chances of a rally as it acts as an anti-inflationary asset, at the same time that the supply of Bitcoin is weakening after the halving event and this Which strengthens the chances of a sharp rise.
It is clear that the price of the Corona virus pandemic will be high, as Bitcoin and other cryptocurrencies are tools beyond the reach of the world’s central banks, while the risks of government roadblocks will continue to present challenges, success is the function of an expanded market capable of digital exchanges.