• After a high of USD 5,558, Bitcoin trades around USD 5,100 in mid-week markets
  • Bitcoin trader Tone Vays believes Bitcoin could still be searching for a bottom prior to halving in May, with even USD 2,800 not a worrying price
  • South Korea’s government has granted a total of USD 3.2 million to blockchain companies in the country

 

Bitcoin is facing a tough day at the markets today, with selling pressure currently threatening to loosen its hold on the important USD 5,000 support levels, which has been holding for over 30 hours now. After a daily high so far of USD 5,558 (CoinDesk), Bitcoin is now losing some ground at around USD 5,100.

Bulls and analysts aren’t afraid of the drop though, with many putting out brave faces in the current situation. One long-term Bitcoin holder, Tone Vays, says that even if Bitcoin trades at USD 2,800, it will not be any cause for concern. His caveat, though, is that this should only happen before the next Bitcoin block reward halving event, now estimated to happen in the first half of May 2020.

The influencer, who operates the Trading Bitcoin YouTube series, said that he was even eyeing a floor of Bitcoin at USD 2,000, saying that he had always been anticipating USD 2,800 since there was, in his mind, plenty of room below for Bitcoin to go to, prior to the halving event. He explained:

“It’s scary after the halving; it’s not scary before the halving… In fact, I always anticipated it before the halving — so it’s getting there, even if it’s a few weeks before the halving, I am perfectly fine with it.”

Last week, he had already called for Bitcoin to lose the USD 5,000 ground after a short-lived rally following the unprecedented loss in a day on Wednesday. He goes on to say that USD 2,800 would actually represent the final step of the forecast 80% drop from last year’s high of about USD 13,800. A low this year of USD 3,700 so far, though, would be “close enough”, he said.

Another Bitcoin enthusiast, statistician Willy Woo, agreed that Bitcoin was prime for more losses before the bulls would gather strength to strike back. He said on Twitter that this was precisely the conditions Bitcoin was designed for:

“Dump then moon. We are undergoing flight to safety right now, BTC is looking for its bottom… But know that once the bottom is in there are strong bullish pressures ahead. It’s this economic environment in the years ahead that Bitcoin was built for.”

Meanwhile, all is bullish for blockchain as South Korean ministries have backed the industry in the nation, with plans allocating some USD 3.2 million worth of funding to blockchain-based local startups.

The Ministry of Science and ICT, along with the Ministry of Information and Communication Industry Promotion, will jointly launch a pilot program called “Blockchain Technology Validation Support in 2020” to carry out the project. A Decenter report says that the plan will pick nine projects via free public offerings, with each to be given a grant of KRW 450 million (USD 360,000).

Those selected will be based on several criteria, including current performance, the likelihood of future performance, technology verification feasibility, business goals and expected results, as well as the type and level of employment they are expected to create. In essence, services offered by selected companies must be able to create high social and economic value through the use of blockchain technology.

ICT minister Park Yoon-kyu said that outside the scope of blockchain, the project hopes that the participants would be able to create business models based on Internet of Things, artificial intelligence, and big data. He declared:

“We plan to support domestic specialized companies to rapidly grow and activate the ecosystem in the early stage of the blockchain market.”

 

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