Bitcoin Forecast: What To Expect During The Next Month?
Coronavirus has become a powerful blow to the financial market and now we continue to observe the negative consequences of the spread of the epidemic. The price of Bitcoin fell by 25%, although at the beginning of 2020 the digital currency had a good increase. Then Bitcoin reached a maximum value of $ 10,500. Hedge fund executive director Jehan Chu notes that the decline in the most popular digital currency will continue.
He commented on this situation in an interview for Bloomberg and noted the following:
“Now negative moods reign on the cryptocurrency market, which can provoke a massive sale of cryptocurrencies.”
Jehan Chu notes that the depreciation of Bitcoin is a natural process for the digital currency, which has previously been characterized by such fluctuations. The expert believes that this is not the last phase of the decline of Bitcoin.
But not everything is as pessimistic as it might seem at first glance. Chu notes that amid the general weakening of the global economy, investors should pay attention to digital currencies. He predicts great prospects for taking the cryptocurrency market to a new level after the Bitcoin halving (currency split in half).
“Halving Bitcoin could change the market paradigm and trigger a rise in the value of the digital currency.”
Analyzing the behavior of Bitcoin, a well-known strategist, director of Global Macro Investor, Raul Pal fully supports Chu’s opinion about a possible upcoming decline in digital currency.
“Hedge funds must take into account the volatility of Bitcoin. With an increase in the return on digital assets, they are required to reduce the risks.
Bitcoin is at the stage of increasing volatility. According to Raul Pal, it is now important that hedge funds provide minimization of risks for the fall of the digital currency. The expert believes that Bitcoin can get out of a bearish state and take a course on increasing the value. Amid falling rates on stock exchanges, the emergence of new economic threats, investors are interested in a new financial system. But for now, don’t make hasty decisions. Raul Pal focused on the following:
“It’s no secret where the global economy is heading. This is a big digital revolution, creating a new financial model. But for now, investors should not rush into a massive purchase of cryptocurrency. Let’s see what happens next. Good luck to all!”