Events in China affect the price dynamics of bitcoin, and the cooling of the bitcoin market will soon come, according to an expert at Material Scientist.
Investors who made money on the all-time high of bitcoin on April 16, 2021, when the price of the cryptocurrency reached $ 63,000, are waiting for another surge in the value of the cryptocurrency before the end of this year.
Analyst of Material Scientist, a diversified metal supplier company, studied the dynamics of bitcoin and identified the pattern of changes in its price with the peaks of debt crises in China.
He compared the rise and fall in the value of bitcoin in April 2021 with the bitcoin rate on September 23, $ 43,000 and believes that the bitcoin market is cooling down.
This probably indicates that Bitcoin behaves like any other stock asset and its price does not depend on halving.
Halving – halves the miners’ reward for the found block and reduces the bitcoin generation rate. The event takes place every four years. Halving is changing investor sentiment in the cryptocurrency market and can increase the volatility of Bitcoin. It is believed that halving protects the bitcoin rate from the effects of stock markets and makes it independent of the real sector of the economy.
Material Scientist researcher summed up his theory with a statement by famed Chinese economist Ray Dalio.
“I think Dalio is perfectly correct that the bubbles are created by debt crises. And now we can observe how Bitcoin correlates with the events in the PRC “, –
wrote he’s on Twitter.
The expert added:
“Bitcoin volatility due to halving is nonsense, the reason is China’s debt crises.”
The community, against the backdrop of the situation with the developer Evergrande and the consequences of the coronavirus pandemic, took with interest the theory of the correlation between the price of bitcoin and the debt crises in China.
One of the enthusiasts noted that the whales are selling their assets after each peak of the PRC debt crisis. April 2021 was also no exception.
Considering that Evergrande has said it is ready to pay off its debts thanks to government support
China, bitcoin has every chance to reach another historic maximum at the end of the year.
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