Veteran Analyst Says Bitcoin (BTC) and Crypto Traders Should Prepare for a Halving Unlike Any Other – Here’s Why
Market analyst Clem Chambers says Bitcoin is in uncharted territory as the halving approaches.
Chambers, the CEO of global finance tracker ADVFN, writes in Forbes that although the halving – currently scheduled for May 12th – is likely to be bullish for BTC, the fallout from Covid-19 “trumps all other factors.” Bitcoin has never faced a halving in such dire macro economic conditions, and how it will react remains to be seen. Inflation is the key, Chambers argues, as it will allow Bitcoin to thrive in its role as digital gold. But market practitioners and economists are split on whether inflation will happen. Many believe the US will see a repeat of 2009, when deflation happened instead, as the Fed stepped in to soften blows to the economy. Chambers says he sides with the hedge funders who believe this crisis will inevitably impact the value of money.
“More money and lower prices can only happen if there is more stuff and it’s stuff that is not getting made that is the core problem. The ‘sold out’ signs on the internet bullion sites is the canary in the coal mine to me. If we get a pick up in inflation, bitcoin’s price will become unhinged. As such I keep buying.” Chambers also says high levels of global financial liquidity and international trade tensions would likely boost BTC’s value. The International Monetary Fund has warned that the overall economic situation could be nosediving into another Great Depression as coronavirus-related job losses pile up.
Article Produced By
Daily Hodl Staff
Heiko Closhen, Entrepreneur