As fears spiked about the potential economic damage resulting from the outbreak of the global pandemic, cryptocurrency market sharply plunged. This drop was a real shock for cryptocurrency community: the Bitcoin (BTC) price crushed to almost $3,600, marking Bitcoin’s biggest drawdown in the last seven years.
So, will the crypto market recover in 2020? Leading cryptocurrency analysts outline their views.
Changpeng Zhao: “Have people bought more Bitcoin yet? No, in most cases. Many of them are still panicking over toilet paper”.
Some cryptocurrency analysts believe that the reason of market crash is coronavirus, which impacts on the global economy. Binance CEO, Changpeng Zhao, thinks that the global pandemic is a trigger to the market drawdown. He noticed that
“Our economy should be stronger, at least strong enough to survive some shocks.”
Changpeng Zhao believes that investors will broaden their portfolios in time, but they are still panicking over COVID-19.
Tim Draper: “It will be Bitcoin, not banks and governments that save the day”
In an interview with 415 Stories podcast, an American venture capital investor, Tim Draper announced his position. He mentioned that decentralization system powered by Bitcoin will be one of the most important thing in the times of recovery after the global financial crisis. He also commented on this issue on Twitter:
Dan Morehead: “The price of bitcoin may set a new record in the next twelve months.”
Pantera Capital founder Dan Morehead believes that BTC will boost and hit $20 000. He mentioned that the current market drawdown is unprecedented, but he still believes that this will be ultimately positive for cryptocurrencies:
“My best guess is that it will take institutional investors 2-3 months to triage their current portfolio issues. Another 3-6 months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will really begin to rise.”