The contempo COVID-xix market place crash has reduced the risk of a halving price dump and could accept set up a Bitcoin bullrun, some cryptocurrency experts believe.

Earlier today Chainalysis brought together a group of industry experts for an online panel to discuss the bear on of COVID-19 on Bitcoin and what it means for the future.

Chris Bendikson, Head of Enquiry at CoinShares, said he believed the recent price crash in March had prepared miners early for the halving, which volition reduce the sudden impact it could have had on their profitability. Those with outdated equipment had already been forced to drop out or upgrade:

"The result being that after the halving passes, plus maybe some months of potential run a risk volatility, the industry, the mining industry will be in a much stronger position with an overall lower price base of operations."

Bendikson added this set up things up nicely for a mid-term balderdash run:

"What that means is that miners are likely to not have to sell every bit high of a proportion of their mined coins every bit before the halving and the bodily halving, when you lot add that to this, means that we're potentially nigh to see a midterm bullish virtuous wheel in the making."

Financial crisis shows why we demand Bitcoin

Alex Laughton-Scott, Associate Director of CoinShares, explained the crisis has shone a light on the beneficial uses for Bitcoin. He posed the question 'have the fundamentals changed?' then answered his own question by maxim:

"The brusque respond would be: absolutely not. And this global setup is ane that very much could bear witness Bitcoin, Bitcoin'due south uses and values in their entirety [...] We could exist possibly witnessing a bit of a perfect storm brewing for Bitcoin in the medium term."

All correlations go to 1 in a crisis

According to Laughton-Scott, during times of crisis, all correlations get to 1. That is, everything tends to move in the aforementioned direction. He explained the horror price drop in mid-March had been exacerbated by the low marketplace cap, in relation to traditional asset classes, and was further amplified past end losses and automated trades. This resulted in high volatility, even though many individuals may not share traditional market concerns. The good news is that correlations have already started to return to pre-crash levels:

"If correlations continue to drop, and Bitcoin continues its recovery, it delivers a case written report for institutions for how it performs in a global crisis, which is a very central benefit needed to attract that institutional demand."