Will the Halving Market Still Come, with the Sagging Economy and Plummeted Bitcoin?

Since March, the global financial market weakened, and the halving market of bitcoin has stopped sharply. There has been a plunge in prices, which were severely cut within 24 hours. The next scheduled halving is around the corner some 48 days later, will the halving market come on schedule? What should investors choose, to get out of the market or stick to it in the whipsaw market.

Bitcoin Drops More Than 50% in 24 Hours

In May this year, Bitcoin will be confronted with a third halving. In a certain long period of time, the entire cryptocurrency realm has been talking about the “halving market”. However, in 24 hours from the evening of March 12, Bitcoin dropped to $3,800 in the lowest, a plummet of nearly 52%. The market became extremely tragic, some even joked that the halving market is the slash of the price in half.

1-Hour Chart of BTC (From 58COIN)

This plunge is also a test for the entire industry, especially the trading system and risk management of digital currency exchanges. During this round of slump, exchanges including Huobi Global and OKEx, because of their outdated trading systems, have experienced downtime accidents, making the situation for investors even worse. However, 58COIN ensures user’s trading experience with a perfect trading system, and some users of it even made a profit of 1.26 million Yuan with a cost of 700 Yuan in one hour.

This bloody plunge in bitcoin not only triggered a huge shock in the entire industry, but even made some believers in bitcoin begin to wonder whether the halving of the bitcoin market is over?

The Halving Market is not Over

A series of complex factors, including the sudden outbreak of COVID-19, international frictions, and oil price wars, etc., have resulted to this plunge, causing chaos in the digital currency realm even the entire financial market, which is indeed an abnormal economic state.

In recent days, with the continuous release of favorable policies by the global central banks to boost the economy, especially with the help of the Federal Reserve’s unlimited lax policy to rescue the market, global stock markets have stopped falling and rebounded, so does bitcoin, currently maintaining around $6,700.

Besides, seeing from the previous two halving, it’s easy to find that the two big bitcoin rising markets did not appear before the halving, but just a small peak. The real market usually starts half a year or a year later after the halving, reaching to the summit after more than one year. Therefore, it is too early to assert that bitcoin’s halving is over.

Halving + Growing Supporter Size Help Bitcoin Soar

In the short term, although China’s epidemic is under control, the global epidemic is already in an enlarged stage, especially in Europe and America. Under the crisis, investors may sell non-cash assets and retain cash assets in the broad sense. Therefore, in this case, the halving market may lag behind.

But in the long run, Bitcoin’s scarcity and immutability determine its value basis. The halving of Bitcoin will keep its inflation rate at the same level as gold, at about 1.7%. In terms of scarcity, Bitcoin is basically comparable to gold.

Besides, compliant exchanges such as BAKKT and CME are becoming mature, making it easier and smoother for institutions and qualified investors to enter the digital currency industry, and the volume and proportion of derivatives transactions have increased, making institutional investors’ risk hedging tools increasingly abundant. It is expected that during this halving cycle, Bitcoin will become part of the asset allocation of more institutions and qualified investors.

In summary, it can be judged that this plunge belongs to the callback period of bitcoin halving. Each round of sharp decline also indicates the opportunity of the market outlook. Cheap chips will be hoarded, waiting for the next wave of hype and explosion. In the so-called big break, we hope that investors can survive the worst bear market and welcome the all-round bull market.

58COIN is the world’s leading digital trading platform. E-mail: 58coinservices@gmail.com; Telegram: https://t.me/official58

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58COIN is the world’s leading digital trading platform. E-mail: 58coinservices@gmail.com; Telegram: https://t.me/official58

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