Bitcoin will likely see a historic inflection point due to the COVID-19 coronavirus pandemic, according to entrepreneur Cameron Winklevoss. This statement from the Gemini crypto exchange co-owner came in a recent bullish tweet on April 12th.
Winklevoss: COVID-19 will lead to a Bitcoin inflection point
In it, Winklevoss suggests that the developing COVID-19 pandemic will prove to be a bullish catalyst for the Bitcoin price. “This pandemic will be an inflection point for Bitcoin and the Metaverse”, Winklevoss said in his tweet.
What’s more, Winklevoss also told his followers to hold, or “hodl”, their Bitcoin. This advice will prove extremely valuable if Bitcoin actually reaches an inflection point. It is also not unthinkable that the price of Bitcoin could soon surge.
Recent key metrics reveal that Bitcoin is historically oversold. Additionally, it is only roughly a month left until the Bitcoin halving event. This event is more or less universally accepted as a bullish signal that could lead to a Bitcoin price surge.
Several market signals are on Bitcoin’s side
Furthermore, the price of Bitcoin has already fallen by a substantial amount. Bitcoin should not technically fall from unrest in the traditional stock markets. However, the past two months’ extraordinary market events spread to the crypto markets.
Nevertheless, the crypto markets are now seemingly rebounding after a tumultuous period. Moreover, central banks all around the world are eroding the credibility of fiat currencies with quantitative easing measures.
In fact, the US Federal Reserve is even deploying a “quantitative easing forever” initiative to prop up the markets. Recent report also reveal that these quantitative easing measure are only have a mild effect on improving the financial markets.
Will Bitcoin soon surge?
Now, the price of oil is rebounding somewhat after an agreement between the OPEC+ countries to reduce production. However, observers are unsure whether this will be enough to repair the harm done to the financial markets.
According to fresh data from Bloomberg, oil oversupply is still increasing. The developing COVID-19 coronavirus pandemic and its effect are further reducing the demand for oil.
“The oversupply situation is just so large and the market’s interpretation of the deal is that it’s just not enough,” according to the president of Lipow Oil Associates LLC, Andy Lipow.
As such, it will be interesting to see whether Bitcoin can break out. A recent report suggests that traditional investors are getting an appetite for Bitcoin, so it is certainly possible. Moreover, Tim Draper also believes COVID-19 will accelerate Bitcoin adoption.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.