Hedge fund manager Matt D’Souza thinks patience is the key for Bitcoin holders looking to capitalize on the halving.
D’Souza, who’s also the co-founder and CEO of the crypto mining operation Blockware Solutions, says it’s not the time to day trade.
“In 2016, Bitcoin rallied ~67% into Halving. It corrected 33% & bottomed within 3 weeks only to begin a 17-Month Bull Market. In 2020, we didn’t rally going into Halving as we recovered losses from a Global Market Melt Down. The Fundamentals for Bitcoin have never been better.
Halvings are typically Buy the News, Sell the Rumor Events. In 2020, I expect a shallower sell-off than 2016 (we already corrected 20%) & only a 1.5-3 week duration max. Now is the time to be patient & Hold – NOT day trade. The big money is in the sitting & capturing the Cycle.”
D’Souza notes that the Fed is “recklessly” printing money, which will create negative interest rates. He also says 16% of miners have now shut off, giving BTC a better environment to rally.
And it’s not just post-halving developments that could create a bullish environment for crypto. Trader and analyst Luke Martin says Bitcoin is also currently decoupling from the stock market.
The decoupling is underway:
•Stocks selling off and back below where they started May
•BTC bounce continues with slow & steady rise https://t.co/FUYbF8k4h3— Luke Martin (@VentureCoinist) May 13, 2020
In mid-March, when BTC collapsed hand-in-hand with equities, many analysts expressed doubt about the asset’s ability to serve as a hedge on traditional finance.
But that’s no longer the case, according to Martin.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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