Here’s Why Investors Are Still Much More Bullish on Bitcoin Than Any Other Asset
- Analyst says “Buying during Miner Capitulation, when the Hash Rate starts to recover, is a wonderful strategy”
The last week’s crypto carnage has left many people shattered and fearful.
Although not the worst crash in bitcoin’s 11-year history, it was among the top three worst days of bitcoin. The price of the leading cryptocurrency took a fall from about $8,000 to $3,850 following the WHO announcing coronavirus (Covid-19) a pandemic and President Donald Trump’s travel ban from Europe.
Uncertainties have been gripping the market for about a month now that sent cryptos plugging along with stock, bonds, and gold.
Bitcoin meanwhile has bounced back over $5,500 since then but the Crypto Fear and Greed Index is still showing “extreme fear” in the market.
Some like bitcoin skeptic Peter Schiff believes this crash in bitcoin price means “soon the difference between having Bitcoin and not having any Bitcoin will be too small to matter.”
Schiff is a gold bull and bitcoin bear despite the price performance of the latter asset. He is biased here but what can’t be ignored is this much drop in price could mean some really bad things for miners.
As we reported, bitcoin miners are currently “unprofitable” and with the reward halving coming in less than two months that will cut down the block mining reward into half, things could get really bad for miners.
With hash ribbons signaling another miner capitulation, “Buying during Miner Capitulation, when the Hash Rate starts to recover, is a wonderful strategy,” according to analyst Charles Edwards.
Hash Ribbons coming in hot for another Miner Capitulation.
— Charles Edwards (@caprioleio) March 14, 2020
Bitcoin isn’t dead just because “it had a super shitty day”
However, the majority of the Crypto Twitter remains as supportive of bitcoin as ever. Trader Moon Overlord says he is “much more bullish on Bitcoin than any other asset” because unlike the traditional markets where companies rely on consumer input to run, as such their dumping wasn't an “overreaction,” bitcoin isn’t.
A number of countries along with the USA have already declared a national emergency and closed their borders as Coronavirus continues to spread.
Erick Voorhees, CEO of crypto exchange Shapeshift who moved into crypto about eight years ago has seen during this time how bitcoin has gone through such times only to bounce back.
“No, Bitcoin as a store of value isn’t dead just because it had a super shitty day. In the coming months the world will see what anti-fragile means,” tweeted Voorhees.
Not to forget, while bitcoin lost over 38% of its value on March 13, in an hour, we jumped 35% as well. Given that bitcoin is stabilizing above $5,000 after such a crash without the invention of central banks and governments that pumped billions of dollars to help the traditional markets, bitcoin would be just fine.