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Bitcoin will update record highs not before halving, but by September
Morgan Creek’s Jason Williams thinks bitcoin isn’t ready to rise yet.
He expects further currency decline in the short term.
However, he hopes for the return of the military-technical cooperation to historical highs in September.
According to the co-founder and partner of Morgan Creek Partner, the bitcoin rate will drop before the halving, but by autumn it will rush to new historical highs.
The cryptocurrency industry, like the traditional financial markets, has fallen on hard times, but many bitcoin hodlers continue to believe in a bright future for the coin. However, now enthusiasts have lost their optimism, and they no longer expect the explosive growth of bitcoin before the halving that is coming in the coming weeks..
According to some, the cryptocurrency is unlikely to meet this event at levels above $ 6,900. Jason Williams, co-founder and partner of Morgan Creek Digital, believes that the BTC rate will generally drop ahead of the halving.
The price of BTC will go down from here at the halving.
– Jason A Williams (@GoingParabolic) April 1, 2020
Who is buying bitcoins now?
According to the theory of supply and demand, a change in the supply aspect should entail a change in price. An oversupply of an asset in the market causes a decrease in its price, and its scarcity leads to its rise in price.
Every 210 thousand blocks mined in the bitcoin network (approximately every four years), the volume of BTC emission is corrected. This event, or halving, halving of bitcoin cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More, indicates a reduction in the flow of new coins into circulation. This May, miners’ reward for each mined block will be reduced to 6.25.
If we proceed from the price behavior during the previous halvings, then this time we can also count on a bright future for bitcoin. However, the proposal does not solve everything. It is also necessary to take into account the state of the demand aspect – and here everything is very bad.
Covid-19 and the forced quarantine of half of the world’s population have dealt a painful blow to the economy. Analysts in traditional markets are predicting a recession en masse. Economic indicators signal catastrophic rise in unemployment, collapse in market sentiment and consumer confidence.
Confidence among American consumers over the last two weeks slumped by the most on record https://t.co/GnCx0t0ezi pic.twitter.com/LpXW9iCc8K
– Bloomberg Markets (@markets) April 2, 2020
In such conditions, it is difficult to expect an inflow of capital into the bitcoin market. Rather, on the contrary, many hodlers will start to cash out their MTC due to the urgent need for traditional cash..
Light at the end of the tunnel?
However, the same Williams does not think that the current recession will last forever. In his opinion, in the summer, the MTC rate will nevertheless begin to grow and in September will be at new historical highs – accordingly, exceeding the $ 20,000 mark.
The world is trading #bitcoin 24 hours a day. 7 days a week.
New ATH coming in Sept of this year IMO. pic.twitter.com/X2mygZMVkV
– Jason A Williams (@GoingParabolic) April 2, 2020
As support for such forecasts, enthusiasts who share this opinion often cite what is happening in the traditional financial system. National governments and central banks have long been trying to revive it with unprecedented aggressive liquidity injections. They have practically exhausted their entire arsenal of means, but they still cannot achieve the desired result..
However, it would be naive to imagine that the whole world will give up dollars at once and decide to switch to such an alternative as bitcoins, especially in the current crisis. Of course, at the moment people are much more concerned with elementary survival than profitable speculative investments..
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