Crypto and Bitcoin markets continue to drop billions of dollars as speculators around the world get cash. A number of industry celebrities expect the market to recover when chaos eases. However, others think that the worst has yet to happen.
Kashif Raza, CEO of Indian crypto news platform Crypto Kanoon, we may have to witness Bitcoin below $ 3,000. He cited cases where governments would be forced to restrict internet access or completely restrict it. Naturally, this will have major consequences for the digital asset market as they are almost exclusively traded online.
The quick recovery?
In just the past seven days, Bitcoin has lost about $ 50 billion from its market capitalization. The sudden fear of taking over the global market seems to have expanded into the cryptocurrency industry and investors have given up positions in exchange for cash.
Some industry analysts believe that Bitcoin will surge after this particular selloff:
Bitcoin consolidating, and showing signs of bouncing here. While stocks and gold freefall.
At some point the decoupling happens for real, and what we have all been waiting for happens.
The ‘suddenly’ part may be approaching.
– hodlonaut🌮⚡🔑 (@hodlonaut) March 16, 2020
“Bitcoin is consolidating and showing signs of recovery. Meanwhile, stocks and gold fell freely.
At some point, the correlation is real and all we can do is wait.
A “surprise” part may be approaching. “
Bitcoin is falling because Investors are clueless as to what is coming. Their mindset is similar to that of central bankers. They have no idea how bad the consequences of the current monetary & fiscal policy will be. When they figure it out en masse, #bitcoin will skyrocket.
– Fab The Fox 🦊 (@fabthefoxx) March 16, 2020
“Bitcoin is collapsing because investors do not know what is about to happen. Their thinking is similar to that of central banks. They do not know how bad the consequences of current monetary and financial policy will be. When they understand, Bitcoin will skyrocket. ”
Others point out that increasingly extreme economic policies are being taken by central banks around the world to combat the worsening recession. Banks have pumped trillions of dollars into economies. Emergency interest rate cuts from the Federal Reserve and the Bank of England seem to make saving less attractive.
Recently, US banks no longer need to hold any reserves in the future. Some people consider this the death of the US financial system. For those who still sell Bitcoin as a hedge against these radical policies, crypto is still the only option:
Banks can now create unlimited free money. No kidding. When you deposit $ 100 to one bank that bank can now take 100% of and deposit at another bank. On and on again and again to infinity. The American financial system is no more. Buy Bitcoin pic.twitter.com/GA8lxeP6Bg
– Dennis Parker⚡️ (@Xentagz) March 16, 2020
“Banks can now create unlimited free money. When you deposit $ 100 into one bank, the bank may receive 100% and deposit it into another. The US financial system is no more. Buy Bitcoin. ”
Bitcoin under $ 3k: New only is initiating head?
Meanwhile, the CEO of Crypto Kanoon makes a very poor forecast for Bitcoin's short to medium term future. In the following tweet, Kashif Raza makes the case that things would be a lot worse for Bitcoin investors.
1. More cities are going to be locked down.
2. People will rush for Fiat by selling assets including #Bitcoin.
3. Internet will be shutdown to control rumors and fake news.
4. Trading will fall as there will be no internet.
5. #Bitcoin will go below $ 3000.
– Kashif Raza (@simplykashif) March 16, 2020
1. Many cities will be suspended.
2. People will rush to buy Fiat by selling assets including Bitcoin.
3. The Internet will stop working to control rumors and fake news.
4. Transactions will decrease because there will be no internet.
5. Bitcoin will drop below $ 3000. ”
Raza claims that the spread of the virus will force many governments to declare isolation. Currently, large areas of the world are enforcement policies to reduce user movement.
Raza believes that panic will continue. People will increasingly be choosing cash to spend on necessities, not speculative assets like stocks or Bitcoin.
So far, the predictions of CEO Crypto Kanoon seem to be plausible. We have seen a lot of sell-offs in exchange for cash on all kinds of markets.
However, he continued to point out that the authorities would be forced to restrict the use of the internet to control the news. Of course, this will lead to a huge delay in cryptocurrency trading, since most of them all take place online. In such a scenario, Raza sees that Bitcoin is below $ 3,000.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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