Bitcoin’s Price Corrects 15% Just Before Halving. There is never a dull day in bitcoin markets. Just a couple of days before bitcoin halving, bitcoin
Bitcoin’s Price Corrects 15% Just Before Halving.
There is never a dull day in bitcoin markets. Just a couple of days before bitcoin halving, bitcoin’s prices have fallen by 15%. The drop caught everyone off guard as the majority of the people were expecting a pump. Also, this was one of the most severe corrections that the markets experienced since Black Thursday. Despite the severity of the correction, traders and investors remain optimistic about bitcoin’s future.
Also read: Signs Of Bitcoin Pump and Dump Scams
An Epic Recovery
In March, the coronavirus pandemic really started spreading throughout the world. On March 11, the World Health Organization (WHO) officially deemed the coronavirus a pandemic. This sent the financial markets of the world in panic mode. Across the globe, stock markets crashed. It didn’t even spare the crypto markets.
The entire crypto market saw a gut-wrenching crash with bitcoin crashing by more than 50%. The drop was so sudden and so severe that the day is being referred to as “Black Thursday”. So many traders were liquidated in the crash and bitcoin’s very future seemed to be jeopardized.
However, bitcoin slowly regained stability. Spot buyers stepped in and bought truckloads of bitcoins. This showed that people still believed in its future despite the horrible crash. This quickly sent bitcoin on a recovery trajectory that has been nothing short of impressive. Day by day, bitcoin inched closer to the price point it was at before the crash.
Less than two months from Black Thursday, bitcoin touched the coveted $10,000 mark. This marked a recovery of more than 160%. This has been special for more reasons than one. Bitcoin has become the fastest market to recover. The enormous gains in such a short amount of time have caught the attention of the entire world. Also, bitcoin is back to being the best performing asset of the year.
Price Corrects At The Doorstep
Even though most people were expecting further price rise after the halving, bitcoin prices tumbled today. In a way, this was to be expected for more than one reason. For one, it has already recovered by more than 160%. Therefore, a correction was in order. Second, historically, bitcoin experiences a pre-halving dump. This was what happened.
Prices dropped from around $9600 to $8100 in a matter of half an hour. This is a drop of $1500. If it was any other market, people would have panicked like the world was ending. However, industry participants are now habituated with such volatility. This is especially around the halving event.
Also read: What are Bitcoin Derivatives
Future of Prices
According to many investors and traders, the future remains bullish for bitcoin. The halving will reduce the new supply by half. Even if the current demand remains the same, it will put an upward pressure on prices. Also, as more and more people get interested in the orange coin, demand will only increase.
Also, the non-stop printing of fiat currencies by world governments is the perfect setup for bitcoin to fly. People would be looking to park their value in a hard asset. If its performance is any indication, bitcoin is the hardest asset right now.