Crypto Twitter analysts are turning bearish on bitcoin following the most recent market crash in response to the global coronavirus pandemic.
Following the sudden market crash for cryptocurrency, which saw the price of bitcoin dip below $4,000 in the worst single-day selloff in history, analysts on Twitter are beginning to turn bearish. While BTC was previously approaching $10,000 in anticipation of May’s halving event, the outlook for bitcoin is now being called into question.
Twitter analysts posted a combination of exacerbation and humor, with some in disbelief over quickly bitcoin lost gains built over the last year.
Bearish on an inverted scale.$BTC pic.twitter.com/3MfRecz0Qz
— Squeeze (@cryptoSqueeze) March 14, 2020
Some are suggesting that bitcoin may struggle to find investor confidence following the crash, with mainstream and institutional buyers unwilling to risk the market’s volatility.
Looking at this piece of shit monthly, I don't really feel like buying the bottom at all, even if the price is at $3000, $1500
This savage dump violated a consensus that was built over a 8 year period
It might take another 8 years to rebuild confidence in BTC pic.twitter.com/LMqIpswjn0
— ๑ RAMEN ๑ (@NoodleofBinance) March 14, 2020
Others took a more rational point of view, explaining the sell-off was an attempt to hold cash amidst the broader economic downturn. While bitcoin was viewed as a safe haven asset in the event of a global market crash, stocks have managed to rebound somewhat since the midweek panic.
A big part of $BTC selling off is due to a panacked marketplace where traders are looking to get into cash
That same cash isn't going to be flowing back into Bitcoin anytime soon
So unless stocks rally, or you convince your entire town to buy Bitcoin
Don't expect a rally soon
— Josh Rager 📈 (@Josh_Rager) March 14, 2020
Twitter analyst PlanB, who gained renown for the application of stock-to-flow (S2F) to bitcoin, argued that the cryptocurrency was still fluctuating within the mode’s predicted price range despite the market crash. The analyst said the volatility was shaking out “the weak hands.”
Some people think S2F model broke yesterday. Of course it did not. #bitcoin oscillated nicely around model value and stayed well within model bands. The extreme volatility within the model bands shakes out the weak hands. No extreme returns without extreme risk (volatility). pic.twitter.com/6UB3hO3ZE7
— PlanB (@100trillionUSD) March 13, 2020
The cryptocurrency fear and green index, which aggregates market sentiment from a broad range of sources, has shown “Extreme Fear” for the last week. While crypto prices have continued to fall, more fearful ratings on the index have historically proven to be buying opportunities for willing investors.
Andreas Antonopoulos also weighed in on the market crash, calling the volatility a product of industry’s focus on institutional investors.
You wanted “institutional investors” and “mainstream adoption”?
This is what it looks like: Absent the principles of decentralization, traded as a high-volatility asset to add “spice” to a portfolio.
As soon as price gets uncomfortable, they drop it like a hot potato. We don't.
— Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) March 13, 2020
Antonopoulos also responded to users concerned over the outlook for cryptocurrency miners who maintain the blockchain. While the current breakeven point for bitcoin miners is $6800, analyst firm Tradeblock predicts costs will increase to $12,500 following May’s halving.
Nothing to do with that. If 50% of miners drop out, the rest become much more profitable and stable. Yes some centralization, but no impact on security, as we were at 50% less hash rate 18 months ago.
This was all “market sentiment”, not a single asset was spared worldwide
— Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) March 13, 2020
Featured Image Credit: Photo via Pixabay.com
