Bitcoin

Bitcoin Halving and COVID-19: Impact on the Value of Bitcoin

We are fast approaching the event of Bitcoin halving and the turbulence in the economic system created by the coronavirus is bound to have implications for the world’s economy. The various sectors of the economy are reeling under the heat of the COVID-19 and this has led to the many investors panic under the possibility of the impending global economic recession.

Federal Reserve and its preparations

Neel Kashkari, who is the head of the Federal Reserve Bank of Minneapolis, said that the situation in the US is going to be severe and the exact damage caused by the coronavirus can be ascertained only after some few days. But if the present signs of the crisis are anything to go by, then the world economy is heading towards a difficult phase. Alleviating the fears about lack of cash, Kashkari said that nobody should be concerned about lack of liquidity in the system and in fact, the top echelon went on to emphasize that the Federal Reserve has an infinite amount of cash to counter any kind of contingency situation in the future. The very specific reason for the existence of the Federal Reserve, according to Khashkari, is to provide support to banks and financial Institutions in such specific situations of trouble and acts as a buffer for the country’s financial structure and support system. It is important to note that the Federal Reserve has got a mandate from the US congress to inject much-needed liquidity into the financial system without any inhibition regarding the devaluation of the currency. The head of the Federal Reserve said that they would print the money and provide to customers through direct withdrawal, ATMs, or other means.

Bitcoin Halving

In the backdrop of these economic conditions, the Bitcoin halving event has become even more interesting for investors and financial experts. All eyes are on what specific impact the Bitcoin halving will have on the future prices of the digital currency, which is largest in terms of market capitalization. Before the outbreak of COVID-19, a large consensus was among the experts that the Bitcoin halving event was going to increase the valuation of the cryptocurrency by reducing its supply in the market. It made sense as the decrease in the supply of the digital coin should ideally lead to an increase in its value owing to more and more people wanted to purchase the coin in anticipation of a good return. According to the prediction of various crypto experts and enthusiasts, the halving event is expected to push the value of Bitcoin at least beyond the level of $10,000. Some financial experts are also predicting that the value of Bitcoin might go well past $300k within the next two years, which seems to be a very optimistic forecast but well within the scope of the reality.

Conclusion

Amid the ongoing lockdown, one easy way to effectively utilize the time and make handsome returns on investment is the use of automated Bitcoin trading. There are a number of automated software options available in the market, although Bitcoin Rush Review 2020 is the most preferred option. You can automatically trade on this platform and the complete information on Bitcoin prices, charts, and other charts are available on coinlib.io. In sum, a realistic analysis of the Bitcoin halving, which is going to happen sometime in the month of May and reduce the pay off from the existing level of 12.5 BTC to 6.25 BTC has greater financial implications for the global economy especially in the wake of the ongoing crisis of coronavirus. How it eventually turns out is anybody’s guess and only the future will tell the answer.

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Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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