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Should We Expect For A Peak in Bitcoin’s Volatility In July 2020?

Amid tightening of quarantine restrictions, the blockade of the global economy due to COVID-19, Bitcoin may experience a historical record level of volatility in July. Will Bitcoin price fluctuations become the foundation for the next breakthrough, or will the flagship cryptocurrency fail?

How does the macroeconomic situation in the world affect Bitcoin?

The negative consequences of the spread of COVID-19 will increase like a snowball because now we see only the tip of the iceberg and can not fully estimate the magnitude of the disaster for the whole world. Leading financial experts continue to talk about this relentlessly.

Moreover, the situation exacerbates by the increase in the number of infected citizens over the past week. In particular, some states in the US were forced to return the restrictions on businesses that established at the beginning of the distribution of COVID-19.

Today, there is a big burden on the economy due to the blockade of external cooperation, restrictions on the export of goods, and the development of the tourism business. Forecasts of the International Monetary Background also remain disappointing: analysts are convinced that as a result of the spread of the pandemic, in 2021 the volume of production of goods in the world will decrease by 5%.

As a result of the tense macroeconomic situation, Bitcoin is at risk of increased volatility and deep price drawdowns. According to analysts, this process may already begin in July.

What are the consequences of the increased volatility of Bitcoin?

If the price of Bitcoin rapidly falls under the pressure of external circumstances, a price breakout will likely be just as sharp and widespread. This forecast supported by many crypto enthusiasts that Bitcoin has repeatedly demonstrated this ability to restore prices.

This model of market behavior of a crypto asset is similar to the action of a spring, so crypto analysts expect that increased volatility will lead Bitcoin to new price highs. In particular, some crypto analysts predict a rise in the price of Bitcoin to $50,000 and higher.

But not only Bitcoin can fall under a wave of rapid price fluctuations. The stock market is also in the balance of a crushing collapse, according to traders. In these conditions, the current policy of Donald Trump and the allocation of the Fed the new package of incentive measures may play in favor of Bitcoin.

Bitcoin loyalty continues to grow

Hopes for the rehabilitation of the global economy by the end of 2020 remain minimal. In these conditions, loyalty on the part of both major investors and ordinary citizens has increased for Bitcoin. The threat of economic collapse forces many people to seek ways to protect their capital, and cryptocurrency is one of such solutions.