Analyst States COVID-19 Coronavirus Pandemic “Won’t Destroy Bitcoin”

Analyst States COVID-19 Coronavirus Pandemic “Won’t Destroy Bitcoin”

The COVID-19 coronavirus pandemic currently gripping the world is having a substantial economic impact. Stock markets around the world are plummeting, and initially took parts of the crypto markets down with them. Now, however, one analyst is saying that this pandemic won’t hurt Bitcoin.

“Coronavirus won’t destroy crypto”

Specifically, this news came from the bullish crypto analyst “BTC_Macro” in a recent tweet. BTC_Macro believes that the distributive and centralizing traits inherent to Bitcoin make it resistant to the ongoing panic.

At the time of writing, Bitcoin is trading at roughly $6,390. This represents a recovery from the past weeks lows, but is still significantly down from Bitcoin’s relatively recent $10,000 price. In fact, the price of Bitcoin has fallen around 30% during the past month.

BTC_Macro suggests that this recent market dip is just a blip, that will not have any long-lasting effects on crypto. “Don’t worry. Coronavirus won’t destroy crypto,” BTC_Macro said in a recent tweet. What’s more, he also notes that Bitcoin is far more resilient than the traditional banking system.

“Bitcoin has worked every single day since 2009. Not even your bank’s website has been up for that long without interruption.”

It seems as it BTC_Macro may be correct in his bullish stance. In fact, recent reports reveal that the amount of new Bitcoin addresses is trending up over the past two weeks. Two weeks ago, the now infamous “Black Thursday” crash took place, which saw the price of Bitcoin collapse to roughly $3,800.

A number of bullish signs are emerging

However, the growing amount of Bitcoin addresses since this flash crash is an encouraging sign. What’s more, Bitcoin keeps trending back up towards its previous $10,000 price point, although it isn’t there yet.

The following graph from Glassnode demonstrates the number of Bitcoin addresses holding 1+ coins. After several days of all-time highs, this signals confidence in the network and asset class. What’s more, there’s now just roughly five weeks left until the Bitcoin halving.

The 2020 Bitcoin halving event will see the block mining reward for Bitcoin effectively be cut in half. As such, proponents of the stock-to-flow (S2F) economic model suggest that Bitcoin’s price could double. 

This price surge would, in theory, be a way for the market to account for lower future supply. As such, it will be extremely interesting to see how Bitcoin performs as the COVID-19 pandemic continues to unfold.