As part of the latest issue of the Cointelegraph Talks on May 5th, Paolo Ardoino, CTO of Bitfinex, John Todaro, Director of Institutional Research at TradeBlock, and Alejandro De La Torre, Vice President Mining Pool at Poolin, attended. Today’s panel looks at brainstorming about the upcoming halving of Bitcoin (BTC), the COVID-19 pandemic and much more.
The current pandemic is causing uncertainty
Although Bitcoin is largely outside of the dominant financial ecosystem, the asset has still responded to COVID-19 and the chaos that it entails.
“COVID-19 has definitely affected space,” said Todaro on May 5, noting the presence of uncertainty and increased volatility. He said:
“In the long term and a month away from this event, I don’t think this has affected an institutional investor or trader. I think they took the opportunity to accumulate at lower prices and I think we have no real slowdown in that Activity seen on this front from the institutional side. “
TradeBlock’s director also said the impact of the pandemic could continue in the coming days. Bitcoin’s future response to these global conditions remains uncertain.
Bitcoin price activity and mining could weaken
De La Torre was on the mining side of the halving. “Bitcoin, the price, the hash, and the difficulty, I think they’ll find a balance,” he said, referring to the old miners who leave when the new miners enter.
“As soon as the hash rate continues to increase, like last year, the price could ease in terms of volatility,” he said, referring to the halving times amid a less turbulent mining scenario.
Bitcoin has been correlated with major markets at times
In addition, the correlation between Bitcoin shares and the traditional market price has found its way into the interview. When the traditional markets collapsed on March 12, Bitcoin also saw a dramatic drop in prices, although the correlation of assets was not so clear in the weeks that followed.
“Correlation with stocks is a really important factor,” added Ardoino
“Bitcoin and the crypto industry have not yet reached mass adoption, so it’s normal for such a new market to follow stronger markets.”
Bitcoin needs further expansion and growth to move away from traditional markets, Ardoino said, adding that the cryptocurrency could position itself as a hedge in the future. In the short and medium term, however, Bitcoin will continue to take its signals from the main markets, he concluded.
Towards the end of the interview, De La Torre Ardoino also asked a question about Bifinex’s opening of its own mining pool, as reports say that several exchanges have entered the mining sector.
“No, I honestly believe there are people who are better suited for this job than we are,” he said, explaining that he would rather leave it to experts with years of experience in the field.
The trio of experts dealt with both these and specific concepts.
Did you miss the panel? Check it out here on Youtube or check it out below.
Disclaimer: * The event is sponsored by Currency.com. On the day of the BTC halving from 0.00 to 23.59 UTC, Currency.com offers a 0% commission on BTC trading. Currency.com enables BTC trading with up to 100 to 1 leverage.
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