The Hash Rate of the Bitcoin Blockchain network has hardly flinch when the BTC price within 24 hours has fallen by approximately 50 percent to 3,600 dollars. This could suggest that the large Mining have not surrendered to company in the midst of falling of the prices – which is consistent with the theories of well respected crypto-managers.
What are these theories?
High-ranking investors on the crypto-market (such as Ari Paul, the Chief Investment Officer and managing partner of block tower Capital) believe that investors have not opted for sale to low $ 4,000.
The abrupt Liquidation of Long contracts in the amount of one billion dollars on the major crypto currency exchanges led to a Flash Crash to 3,600 dollars, resulting in a lot of positions on margin were sold.
This could indicate that the large players on the market for crypto-currencies have not capitulated in the rapid downward movement under 4,000 dollars probably.
The strong Think big Bitcoin holders such as the Winklevoss twins, and the CEO of Galaxy Capital LP, Michael Novogratz, suggests that whales are not in the short term, surrender is likely.
Large-scale Mining centres should have prepared in relation to the block reward halving in April 2020, at least 12 months of Mining costs. This could prevent a potential sale of the great Mining centres in the coming months that could theoretically have a significant selling pressure on the market.
The relatively stable Hash Rate of the Bitcoin network also suggests that the Miner will have to continue to trust in bitcoin long-term price trend.
Can recover the BTC until the end of the year?
A large part of the Sell-offs on the crypto-market has been caused by the hectic sale of shares in the United States and Europe, because of the fear of the Coronavirus has increased to pandemic.
This means that If the US and European stock market pandemic begins in the coming months, with the disappearance of the Corona to recover, could also increase the appetite for crypto-Assets (including Bitcoin) may be again.
While trust in the US has slowed government to curb the Coronavirus outbreak since the beginning of March, have shown the progress of China, South Korea and Singapore, that it is possible to eradicate the Virus.
Balaji Srinivasan, a former Stanford Professor and highly respected researcher with Work in the clinical and microbial genomics, says that it is possible to eradicate the Virus:
“China, Korea, Singapore, and Taiwan show that it may be easier with new cases completely eradicate than we thought. If so, should it not be our goal, to laugh at the curve, but to smash them. To bring new cases to Zero and accelerate at the same time diagnostics and drugs with an extended right to try.“
In the next few months, the correlation between Bitcoin and the US will continue stock market expected, so that the probability of a Bitcoin recovery depends on till the end of 2020, the progress made in the Corona-containment in the United States and Europe.
Bitcoin, currently at # 1 on the market capitalisation, has risen in the last 24 hours by 0.31%. BTC has a market capitalization of 99.23 billion $ in the case of a 24-hours-a volume of 31,89 billion $