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Bitcoin Price Might Not Go Up After Halvening. Coinshares CSO Meltem Demirors Explains Why

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Tue, 12/24/2019 - 16:05
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  • The mushrooming growth of the derivatives market will stifle Bitcoin's price action after the next halvening

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Contents

Meltem Demirors, the CSO of CoinShares, has just explained why the Bitcoin price is not necessarily going to rally after its next halvening. Her main argument is that the growth of crypto derivatives will prevent producers (miners) from setting the price of Bitcoin. 

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A spanner in the works 

Since BitMEX became a pioneer in the crypto derivatives market, the market has been getting more crowded. Derivatives such as options and futures still allow Bitcoin traders to get their kicks despite the declining volatility of this fledgling asset class.     

CME Group finally launched its Bitcoin-settled Bitcoin futures on Dec. 17, which coincided with the price of Bitcoin taking a massive hit. Christopher Giancarlo, a former chairman of the CFTC, revealed the launch of these futures was plotted by the US government to pop the great Bitcoin bubble

According to Demirors, price speculators will trade derivatives instead of the underlying asset. She predicts that Bitcoin will become another "backwater" like oil or gold whose prices are commanded by global speculation.

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Things could be different 

The upcoming halvening, which is expected to happen on May 14, 2020, is the linchpin of all bullish narratives surrounding Bitcoin since its supply will be basically cut in half. During its two previous halvening cycles, BTC managed to generate some amazing returns. 

This time around, many experts believe that BTC might not repeat the success of its two previous halvings. Back in November, market analyst Willy Woo noticed that the Bitcoin price was way too bearish in the run-up to such a highly-anticipated event.    

Meanwhile, Bloomberg's Joe Weisenthal recently engaged in a Twitter brawl with the proponents of Bitcoin's stock-to-flow model, after calling it "complete nonsense."  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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COVID-19 Crisis Ruins Bitcoin's Q1, but Bulls Could Soon Have Massive Comeback

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Tue, 03/31/2020 - 19:25
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  • Bitcoin (BTC) bulls have high hopes for Q2 after the coronavirus-induced crisis tanked the price of the leading cryptocurrency

Cover image via stock.adobe.com
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Bitcoin, the number one cryptocurrency by market capitalization, is set to finish its tumultuous first quarter of 2020 in the red with a 10.65 percent drop, according to crypto data provided by Skew.    

As reported by U.Today, it suffered a price crash of enormous magnitude due to the coronavirus pandemic that resulted in the global economic shock. 

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The stellar quarter that wasn't 

In early 2020, Bitcoin was on track to have its best Q1 since 2013. In fact, it gained more than 50 percent after reaching its current yearly high of $10,508 on Feb. 13. However, this rally hit a snag and BTC printed its first negative February close in six years

All bull dreams have been brutally shattered after the 'Black Thursday' of May 12. On top of halving its price in less than one day, BTC was actually in great danger of hitting zero because of a string of liquidations on BitMEX. 

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The odds are in the bulls' favor  

That said, there is still a good chance that the bulls can stage an impressive comeback in Q2, which is historically the most successful quarter for the leading cryptocurrency.

Last year, BTC kicked off its impressive rally on Apr. 2 with a sudden 20 percent price pump.   

At press time, BTC is sitting at $6,480, continuing its streak of range-bound price action.  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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