Industry leaders from Bitfinex, Poolin mining and TradeBlock research briefed a number of timely topics, including halving effects on Bitcoin amid COVID-19 uncertainty.
As part of the most recent edition of Cointelegraph Talks on May 5, Bitfinex CTO Paolo Ardoino, TradeBlock director of institutional research John Todaro, and Poolin mining pool VP Alejandro De La Torre came on today’s panel, bringing a bevy of insights on Bitcoin’s (BTC) upcoming halving, the COVID-19 pandemic and more.
The current pandemic causes uncertainty
Although Bitcoin largely lies outside the mainstream financial ecosystem the asset has still reacted to COVID-19 and its related mayhem.
“COVID-19 has definitely had an impact on the space,” Todaro, said of crypto on May 5, noting the presence of uncertainty and increased volatility. He said:
“In the longer term, and being a month out from that event, I don’t think it swayed any institutional investors and trader. I think they did use the opportunity to accumulate at lower prices, and I think we haven’t really seen a slowdown in activity on that front from the institutional side.”
The TradeBlock director also said the effects of the pandemic could persist in days ahead. Bitcoin’s future reaction to such global conditions remains uncertain.
Bitcoin’s price activity and mining could level out
De La Torre weighed in on the mining side of the halving. “Bitcoin, price, the hashrate and the difficulty — I feel like it will reach an equilibrium,” he said, referencing older miners leaving while new miners enter.
“Once the hashrate continues to increase, like it’s been doing for the last year, I suspect the price might calm down in terms of volatility,” he said, referencing post-halving times down the road amid a less turbulent mining scene.
Bitcoin has correlated with mainstream markets on and off
Additionally, Bitcoin’s stock and traditional market price correlation made its way into the interview. When mainstream markets tumbled on March 12, Bitcoin also saw dramatic price decline, although the asset’s correlation has not been as clear cut in the weeks since.
“The correlation with stocks is a really important factor,” Ardoino said, adding:
“Bitcoin and the crypto industry hasn’t reached mass adoption yet, so it is normal for such a new market to follow stronger markets.”
Bitcoin needs continued expansion and growth in order to carve out its own path away from traditional markets, Ardoino said, adding that crypto could position itself as a hedge in the future. In the near and medium term, however, Bitcoin will continue to take its cues from mainstream markets, he concluded.
Near the interview’s end, De La Torre also shot a question over to Ardoino regarding Bifinex opening its own mining pool, as a number of exchanges reportedly have entered the mining sector.
“No, honestly I believe that there are people that are more suited than us in doing that job,” he said, explaining that he would rather leave it to experts with years of experience in that arena.
The trio of experts went into further depth on these concepts, as well as a number of other specifics.
Missed the panel? Check it out on Youtube here, or watch it below.
Dislaimer: *The event is sponsored by Currency.com. On the BTC halving day from 0.00 till 23.59 UTC – Currency.com offers 0% commission on trading BTC. Currency.com allows BTC trading with up to 100 to 1 leverage.
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