Clem Chambers, the CEO of Global Finance Tracker ADVFN, has pointed out reasons why the much anticipated Bitcoin halving may take a new turn, different from what has been seen in the past.
The halving is scheduled is less than a day now, according to him, it is expected to make the crypto market go bullish, but for some factors like the COVID-19 pandemic reverse may be the case.
Comparing the previous halving event to the next one, Chamber explained that there seem to be similarities, but the clear difference is that the present fractal of Bitcoin is driven by the coronavirus crash.
The market analyst argued that Bitcoin has never experienced halving in a dreadful macro economic situation; hence its response in such condition is yet to be seen.
To Chamber, inflation remain the major key that will make Bitcoin to flourish as the cryptocurrency giant, but most economist and market practitioners are confused about the possibility of inflation.
Chambers said most hedge funds’ top minds predict that the US will witness inflation while economists believe deflation is about to happen in a similar manner to what was experienced in the year of 2009.
Inclining towards the perception of the hedge fund, Chamber expects inflation which will in turn affect the value of money. He further argued that the core problem remains the halt in production of more stuffs, as the continuous production of stuff would make more money and lower price possible.
“The ‘sold out’ sign 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” reiterated Chamber.
The CEO explained that Bitcoin will be more favored by inflation, and that “Bitcoin loves trade wars, sabre rattling, anything that will make people buy bitcoin to move, hide, travel with or protect their wealth,” adding that the halving is happening around a new “Chinese devaluation/trade war/Trump tweetstorm happening.”
Chamber in conclusion noted that the highness in the levels of the international trade tension and global financial liquidity would likely bring a boost to the value of Bitcoin.
Also there has been series of warning issued by the International Monetary Fund as covid-19 related job loss heightens; this could serve as a plunge into great depression.