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Edward Snowden: ‘this is first time in a while I wanted to buy Bitcoin’ for this reason

Edward Snowden: ‘this is first time in a while I wanted to buy Bitcoin’ for this reason

American whistleblower Edward Snowden said that this is the first time in a while he wanted to buy Bitcoin.

Snowden suggested that the Bitcoin price crash of more than 55 percent in a two-day span had “too little reason” for being such an intense correction in a short period of time.

Is Snowden right about Bitcoin?

Like every other risk-on or high-risk asset, the price trend of Bitcoin in the current macro landscape heavily depends on the trend of the global stock market.

For that reason, over the last week, the Bitcoin price has been heavily correlated with the Dow Jones.

The heightened level of fear towards the coronavirus pandemic has led the Bitcoin price to plummet to levels unseen since December 2018, but the fundamentals of the dominant cryptocurrency remain unchanged.

The hashrate, despite the overnight 30 percent drop, still remains significantly higher than where it was a year ago.

The usage of addresses, the value transmitted by the Bitcoin blockchain network, and the strong infrastructure that support the cryptocurrency remain intact.

With the exception of several exchanges, most major cryptocurrency trading platforms have operated without glaring issues as the Bitcoin price dropped by 50 percent within a 24-hour span, showing enhancements in the cryptocurrency exchange market infrastructure.

bitcoin price
The Bitcoin price recovers by 44 percent on the day (source: tradingview.com)

What can lead to a crypto recovery?

If the global coronavirus pandemic is the main cause of the Bitcoin price decline in March, recovery from the virus outbreak is likely to refuel the appetite for cryptocurrencies as an asset class.

As seen in China’s recovery from coronavirus and South Korea’s containment of the virus after weeks of rigorous testing and large-scale quarantine, the U.S. and other European countries could potentially recover from the virus outbreak with the implementation of the right systems.

As the global financial market begins to recover, it is likely to add to the momentum of Bitcoin and the rest of the crypto market, leading to an accumulation phase.

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Joseph Young
Author

Joseph Young

Analyst @ CryptoSlate

Joseph Young is a finance and tech journalist. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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