Bitcoin is currently trading above $6,300, still down over 14% on a year-to-date basis but up more than 60% from the 2020 low of $3,850.
Since mid-February, when BTC/USD went to $10,500, the world’s leading cryptocurrency has been on a downtrend, acting like a risk-on asset just like the stock market as COVID-19 cases continue to rise around the globe.
Although it is expected that the stock market is yet to make a bottom and by extension, Bitcoin. But Jihan Wu, the founder and CEO of bitcoin mining giant Bitmain is optimistic about the BTC price in 2020.
Bitcoin can’t act as a safe haven in a volatile world
In his latest interview, Wu talked about how the billions of dollars injected by the central banks and loose monetary policies adopted by them to combat the impact of novel coronavirus on the economy will make its way into the crypto market as well.
However, this bull market won’t be happening “immediately after the halving” in May and is likely to be delayed this time, said Wu.
“As bitcoin’s market cap grows, its volatility decreases and becomes more stable. That means we may not see abrupt spikes in its price. No matter how high bitcoin goes, one day it will reach the top.
Before that, it will see price flatlining growth with lots of twists in the next few years,” said Wu echoing his thoughts from last year.
The crypto billionaire, however, is “not that fanatic any more”. Wu said,
“I don’t think bitcoin could act as a safe haven in a volatile world. However, what bitcoin and the financial market in my eye are a bit like the relationship between surfboard and wave. How well you can surf depends on your skills.”
Earlier this year, Wu was engaged in a management fight with Micree Zhan, who earlier this month filed another lawsuit in an attempt to regain his position as the CEO of the company after being ousted by Wu.
Next-generation mining machines will last for over 3 year
Recently, we reported that the hash rate of the network dropped 45% while the difficulty adjustment was the second-highest drop ever.
Amidst this, just last week Bitmain announced the upcoming release of the Antminer S19 series.
#Antminer is proud to announce the official sales launch of the next-gen #AntminerS19 Series! (Selling domestically with international sales following soon) For those interested to know more about the product, kindly contact our sales team. #Bitmain #AntminerS19Pro pic.twitter.com/z9bt6VWiw8
— Antminer_main (@Antminer_main) March 23, 2020
The next-generation mining machines, Wu said could serve for about three to four years.
He explained that those machines that are rolled out at the beginning of a bull market last for a longer time while those released during the bull market have a relatively shorter lifespan.
Wu also commented on Bitcoin Cash and Ethereum, while the former he said needs to “keep the technical architecture simple and the community united,” Ethereum has a strong first mover advantage in DeFi and hence is untouchable.