Renowned Analyst Chris Wood, Urges Investors to Buy BTC with the Halving Event Imminent
- Chris Woods urged investors to buy more BTC before halving event as price is set to sky rocket as it did in the previous two halving’s. Despite BTC taking a hit in March, it still offers investors a unique opportunity to diversify their portfolios.
With the Bitcoin halving imminent, Chris Wood Global Head of Equity Strategy at Jeffries Financial Group has urged investors to invest in more BTC.
According to Wood, who is also the author of the firm’s popular weekly memo dubbed Greed and Fear, following the past halving events (2012 and 2016) the BTC has always increased the price with the assumption that the demand remains constant.
The Bitcoin halving event is set to take place on later on this month on May 13th. The event will be triggered when the network hits its 630000th block. The rewards for the miners are set to drop significantly from 12.5 BTC per block to 6.25 BTC per block. On both of the previous halving’s it has always dropped by 50%: 50 -25 BTC in 2012 and 25-12.5 BTC in 2016. Up to date there are at least 18 million BTC in circulation out of the possible 21 million.
BTC took a hit a heavy hit in March
The BTC however took a heavy hit earlier on in March plummeting by almost 57% from US$9,184 to meager US$3,915. This was alongside other assets as oil prices tanked to negative digits for the first time in history. This placed doubts on whether the BTC is really a safe haven asset as the main objective of its decentralized nature was as an alternative financial system free from inflation. Safe haven assets are usually expected to retain value or even appreciate despite economic downturns.
Notably, the BTC has since appreciated and has now soared to $8857.52 as per this writing according to coinmarketcap.
Gold and BTC’s decentralized nature makes them ideal investments
Wood shares the sentiment that BTC and Gold provide a unique opportunity as an investor could own both without conflict of interest with the other. The BTC also gives the investor the chance to expand their portfolio due to its decentralized nature. This combined with its uninterruptable supply made it immune from interference by the more centralized fiat currencies.
“This respect, GREED & fear continues to believe that investors should own both gold and Bitcoin in the sense that they are not mutually exclusive”