Hitting at its lowest level since March 2019, Bitcoin prices have become a hotly contested debate in the economic circles. The impact of Coronavirus, which has engulfed whole economic activities across the globe, is now having its visible impact on the digital coins and gold as well. The contagious disease has already wreaked havoc in equities markets and now its demolishing impact has spread further to harm the prospects of investments that are considered relatively safe and secure. The bloodbath started just a couple of days back on Thursday when a heavy sell-off induced by the Coronavirus swamped the market. Panicked by the wash-out and massive liquidity squeeze, the various crypto exchanges went under forced liquidation resulting in a major drop into Bitcoin prices.
Ongoing Deliberations of Bitcoin Future
A number of cryptocurrency experts and analysts are coming up with their own opinions regarding the latest wave of disruption in the digital coin market. Commenting on the development, CEO of Europac, Peter Schiff, tweeted that he was not very distressed of not having Bitcoin as the valuation of the most valuable cryptocurrency had plummeted by a huge margin. Seasoned Trader, Peter Brandt also took to the micro-blogging site to justify his position of being a Swing Trader. According to Brandt, the right kind of investment strategy is to concentrate on capturing on a particular stock within periods of extreme fluctuations rather than being concentrated on particular assets in the long run.
It’s important to note that many crypto enthusiasts are also finding this opportunity a good place to start buying more digital currency to make gains in the future. These people are expecting bulls will return soon to the market and the only way forward from here is the rise in the valuation of Bitcoin. Eric Lombrozo, co-founder and CEO of Ciphrex, tweeted that this is absolutely the right time and economic environment to own Bitcoin. Many others in reply to the tweet attempted to curry favor and expressed positive sentiments about the future of Bitcoin.
So now the million-dollar question – is the Bitcoin rush real? It might be difficult to give an exact answer as of now, but in the wake of changing circumstances, we could probably end up with two kinds of scenarios, which, in turn, depend upon whether the intensity of the coronavirus will abate in the future or not. If estimates of virologists are believed, we might get some relief in infections related to coronavirus with the onset of summer seasons. This will help the economic activities to come back to their track while providing much-needed stability to businesses. If that happens, we might see bulls coming back to the crypto market and accordingly, the value of Bitcoin will witness a rise.
However, in case the number of coronavirus cases keeps on increasing unabated, then the future of the crypto market (along with commodities and gold) will continue to remain highly uncertain. Of course, the cryptocurrency backers will find this opportunity attractive enough to buy more Bitcoin as the value of the digital coin seems to have bottomed out, but then the high turbulence in the overall economic environment across the globe can play a spoilsport when it comes to earning the rewards. In sum, we need to wait a bit to get some stable trends with regard to Bitcoin and the valuation of the overall cryptocurrency market.