The global economy is crumbling in the wake of the rapid spread of the coronavirus pandemic. However, investors are positive about Bitcoin’s (BTC) performance for the next six months, according to the Strategic Bias Index provided by Sentix GmbH.
The Sentix Strategic Bias reflects the strategic view of market participants and their underlying perceptions of the value of Bitcoin for the coming six months. This indicator represents investors’ general willingness to invest in the market and leads the market by several weeks.
Experts say that the indicator primarily reflects investors’ longer-term convictions and perceptions related to value. Hence, it is an indicator designed by the ‘wisdom of crowds’; accumulating the knowledge and opinions of leaders in the market.
Sentix Strategic Bias on Bitcoin Chart
It is evident that the strategic bias sentiment almost predicts the trend of BTC price before it happens. Investors somehow predicted that Bitcoin would hit a new all-time high in mid-October 2018 before it happened in mid-December 2018.
Also, they predicted the end of the persistent cryptocurrency bear market of 2018/19 before it happened. But, with the emergence of the current health crisis, the Strategic Bias of Bitcoin seems to be at par with the current price.
However, data shows that the investors are confident that the flagship cryptocurrency will soon take its place as a haven asset.
Bitcoin’s Year-to-date Performance
Bitcoin started the year on a bullish trend consolidating around $7,000. By January 18, the crypto had surged to approximately $8,900. It then corrected slightly to set significant support around $8,300 on January 25.
The flagship token then continued with its upward trend before peaking around $9,500 on January 30. It lost some steam before the bulls took over on February 4, taking the BTC price to a high of $10,360 by February 14.
Between February 15 and February 23, Bitcoin was range-bound between $9,600 and $10,200. The bears took over the market, sinking the price from just below $10,000 on February 23 to $8,500 on March 1. During the first week of March, Bitcoin hovered between $8,500 and $9,000.
The token went on a downward trend losing almost $1,000 of its value between March 6 and March 11. It settled around $7,950. Between March 11 and March 12, the markets lost massively. Bitcoin was not spared. BTC price fell to lows of $3,800 as the pandemic spread fears in the global markets.
Since then, the token has recovered gradually, and it is currently trading at around $7,300 on April 9.
The upcoming Bitcoin halving event is meant to bring down the inflation rate of the cryptocurrency. Therefore, it might boost the adoption of the asset which, in turn, could drive the price of the asset upwards.
Nonetheless, the halving event might also result in technical network adjustments that may result in various issues. Also, the hash rate might drop if Bitcoin miners exit the market due to the reduced rewards.
Experts’ Take Bitcoin Halving
As the halving event quickly approaches, diverse expert opinions and projections seem to emerge. Some are doubtful and do not think Bitcoin will surge while others believe that the halving event is yet to be priced.
The financial underpinning is as important as the technical side of the halving. Relying on historical data, the next price direction for Bitcoin could be up since the crypto has gained more than 1,000 times in value since the first halving.
PlanB, the creator of the stock-to-flow (S2F) Bitcoin price forecasting model, is convinced that after the halving, BTC price will rise to new all-time highs.
On his part, the cypherpunk and cryptographer Adam Back believes that the halving event will ease many geopolitical uncertainties that exist currently. Whichever their opinion, it is clear that the halving event will affect the entire crypto market extensively.