- Bitcoin continues to trade in range, but more analysts now believe the worst has passed
- A CoinDesk survey finds most crypto holders believe their governments have failed to respond appropriately during this Covid-19 crisis
More and more Bitcoin traders and analysts are now believing that the worst has passed for Bitcoin, with little over a month left to go before the next Bitcoin halving happens, which will immediately cut the output of new Bitcoins generated by miners into half.
With Bitcoin having posted small but steady gains over the past few days, and crypto across the board posting green percentages after a horrific mid March, the optimism is unsurprising.
The earlier four-day increase was instrumental in pushing the belief of people up higher yesterday but it will have helped that the momentum has not died down as Sunday passes, when Bitcoin has already fought back to gain back most of its losses over the first quarter of 2019 amid desperate market conditions everywhere else in oil, gold and even stock markets, doubling down on the coronavirus pandemic spreading fear throughout the market. Today, Bitcoin is 75% higher than its 2019 lows already and this belief should lay the foundation for bigger things to come this year.
BitBull Capital CEO Joe DiPasquale, who works a hedge fund in San Francisco focusing on crypto, said there did not seem to be a clear reason for the move coming up to the weekend. On one hand, the short term prospects of a fall below USD 6,000 were not likely according to analysts, but on the other, moves above USD 7,000 are still triggering seller orders intent to take easy profits. In a phone interview with CoinDesk, he said: “You have so many people trying to swing trade on crypto.”
DiPasquale also said though that May halving for Bitcoin was an event much anticipated by many traders, as this would only happen every four years and was a hardcoded programming to reduce Bitcoin’s risk or exposure to inflation. So far, Bitcoin does seem to have weathered the brutal beating that traditional financial markets are taking as Saudi Arabia and Russia look on the verge of an oil production cut to stabilize prices. While the S&P 500 is still down over 20% in 2020, Bitcoin has only experienced about 5%.
In any case, we continue to follow the global pandemic; what else is there to do with most of us being stuck at home right? Countries all around the world are now beginning to accept that this crisis will last far longer than initially expected as global cases break 1.1 million and deaths now approaching 60,000.
— CoinDesk (@CoinDesk) March 26, 2020
A CoinDesk survey now shows that the crypto community also wants a stronger reaction to the crisis. In trying to find out the different associations between crypto holding, political leanings and reader approval of state efforts, CoinDesk writer Daniel Kuhn notes that most readers thought governments weren’t doing enough:
“The overwhelming answer: not well, though not for the obvious reasons that a type-casted bunch of libertarian tech bros would lead you to believe. These advocates for decentralization want a stronger governmental response, financial support for the vulnerable and clampdowns on travel.”
Maya Zehavi, who founded the Israeli Blockchain Industry Forum, said:
“People want to believe the people in charge know what the fuck they’re doing. And because crypto people are so cynical, they assume they can’t trust the government. But they still want it to be competent.”
As they only collecting some 575 respondents, results were inconclusive, but here is a summary of what they said anyway:
- There are almost as many social democrats (16.4%) as libertarians (17.5%).
- Almost 80% agreed or strongly agreed with social distancing. About 73 % believed we shouldn’t be allowed free travel during an infectious outbreak.
- Over half believed their government has already failed to appropriately respond to the dual economic and health threats of COVID-19.
- 45% of central-leaning respondents strongly believed that public health should take precedence over a functioning economy, while only 35% of decentral-leaning said so. Still, the majority of both sides strongly agreed.
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