Bitcoin: COVID-19 could lower the risk of a decreased price after the block is halved

The recent market crash triggered by COVID-19 has, according to some crypto experts, reduced the risk of a price drop after the Bitcoin block halving and could lead to a new bull market. Chainalysis has brought a group of industry experts together in an online panel to discuss the impact of COVID-19 on Bitcoin and its importance for the future.Chris Bendikson, research director at CoinShares, said he believed that the recent price crash in March prepared miners early for halving, which would lessen the sudden impact this could have on their profitability. Those with outdated technology had already been forced to get out or upgrade:

“The result is that the industry, mining industry will be in a much stronger position with an overall lower cost base after halving and maybe a few months of potential risk volatility.”

 

Correlations in the crisis

According to Laughton-Scott, all correlations go to 1 in times of crisis, i.e. everything tends to move in the same direction. He said that the terrible fall in prices in mid-March was compounded by low market capitalization compared to traditional asset classes, as well as stop losses and automated trading