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.
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