Currently, amid the Covid-19 market panic, the Bitcoin market is showing impressive resilience and in fact on a bullish run following the initial collapse in mid-March. Many have put this move, which has taken Bitcoin above $9,000 down to the upcoming halving event this month.
The halving does indeed seem to be prompting the current bullish move, but its effect following the May 12 date is yet to be seen, with some actually expecting a retracement in the market price. However, in general, the market is expected to see good price movement from the halving in the months, and even years to follow.
That being said, there are a number of people who actually see Bitcoin’s market halving already priced in the halving or that the halving will actually have no effect in moving the price of the coin.
Charlie Shrem is one such person who is not looking at internal Bitcoin happenings for the next bullish move, but rather externally and to the economy in a post Covid-19 world.
For Shrem, a well known crypto pioneer, speaking at the Virtual Blockchain Week, he explained a strong bull-case for Bitcoin, saying the combination of diminishing supply from the halving, and mass quantitative easing policies, will drive prices higher over the next one to two years.
“We have two trillion dollars of money printed in the United States, people are starting to get all that money,” he said. “Also, all these people are getting their unemployment benefits probably when they’re about to go back to work and they haven’t been needing to spend much money while they’re sitting at home for the past few months.”
“And then you have the halving where the selling pressure cuts in half all of a sudden at the end of next week. A lot of the miners are amazing people and they mine for the future, but they also have costs and they have to sell. So all of a sudden that pressure is cutting in half, just cut in half, and all this money. What do you think is going to happen?”
Shrem also looked at the stock market, describing the S&P 500 as a metric that the government can manipulate “to let the people think that everything is ok”.
“The stock market, I don’t have faith in it — it’s very manipulatable. I don’t know any stocks for that reason. You’re telling me that half the country doesn’t have a job, but the stock market is making all-time highs. How is that something that we can correlate to how our economy’s actually doing?”