It's quite evident that Bitcoin's value has stumbled amid the global turmoil caused by widespread coronavirus lockdowns.
Having dropped from February's peak of $10,500, this digital currency has faced challenges. has fallen to $6,500, marking a loss of just under 40%.
Yet, many respected analysts anticipate Bitcoin’s that the fundamental aspects of Bitcoin will gain strength throughout this period. Dan Morehead even mentioned that the crisis could herald Bitcoin's maturity.
I've navigated macroeconomic shifts for 35 years, and nothing compares to this event, which will likely conclude the longest global expansion era.
Bitcoin emerged during a financial downturn and is poised to mature in the current scenario.
Here are my thoughts: https://t.co/yjx2FwEEoN
— Dan Morehead (@dan_pantera) March 26, 2020
Why This May Be Bitcoin’s Golden Opportunity: Analysis by an Experienced Investor
In recent weeks, the global fiscal system has been disrupted significantly; the pandemic has led to unprecedented unemployment levels, with major investment bodies anticipating GDP declines reminiscent of the Great Depression, and a rapid stock market tumble of over 30%.
Consequently, governments and central banks have been prompted to deploy extreme interventions – enhanced unemployment support, tax waivers, universal cash handouts, massive scale quantitative easing, and plunging interest rates are some of the initiatives adopted worldwide to stabilize faltering economies.
Morehead suggests that these unconventional monetary and fiscal strategies will greatly benefit Bitcoin and similar assets. In his company's analysis, he indicated latest newsletter :
As the supply of traditional currency increases, more of it will be required to purchase assets in limited supply, such as equities and properties, leading to inflationary pressures on commodities like gold, bitcoin, and other digital currencies.
Moreover, he highlighted that with government encumbrance reaching into the trillions, this imbalance will favorably influence asset values like stocks, real estate, and cryptocurrency as opposed to those influenced by currency fluctuations. In simpler terms, the BTC/USD pair could appreciate.
Bitcoin: A New Price Peak Is on the Horizon Within the Coming Year
Against the backdrop set for Bitcoin's evolution, Morehead concluded by suggesting that the cryptocurrency leader is likely to surpass previous price records within 12 months, spurred by accelerated adaptation that some bulls expect “is not going to happen overnight.”
This sentiment was echoed by Raoul Pal, a former Goldman Sachs executive and the CEO of Real Vision, who asserted in an interview that Bitcoin could rebound to its historic $20,000 value within 12 to 18 months.
In a recent conversation, immediately after expressing his optimism for Bitcoin, Pal hinted that faith in the prevailing system might have diminished, possibly alluding to the societal vulnerabilities exposed by the COVID-19 response — from governance to economics.
On why Bitcoin might hit new highs within a year, Morehead elaborated:
I anticipate a 2–3 month window for institutional players to prioritize current portfolios, followed by another 3–6 months to explore new options like distressed debt, niche opportunities, crypto, etc. As reallocations commence, market momentum will gain steam.
With traditional assets like stocks, bonds (which have surged then plummeted), and commodities underperforming collectively in the crisis, investors might pivot to alternatives, including cryptocurrencies.
