Sumit BeraFri, Apr 3, 2020 11:00 AM
How Bitcoin and Cryptocurrencies Survive During Pandemic
Appearing in December 2019, the new Covid transformed into the headliner of the world news in January. Today, the whole world is terrified with the creating number of cases and gives staggering thought to the condition around COVID-19. The new disease attested extraordinary numerous lives just as hit the overall economy, including the computerized cash market.
What might be said about the stocks market?
Bloomberg noted in their January report, that world stocks have lost $1.5 trillion because of information about the Covid. This starter evaluation incorporates, in addition to other things, the outcomes of the breakdown of costs on the Hong Kong stock trade.
Japan's Nikkei record fell over 2%. European STOXX 600 record lost 1.41%. The French CAC declined by 1.68%, and the German DAX — by 1.47%.
The US showcases likewise felt the blow. In the start of the emergency American market had an observable hit: Dow Jones lost 1.57%, S&P 500 additionally fell by 1.57%, and NASDAQ fell by 1.89%
How about crypto?
The crisis additionally affected cryptocurrencies. Bitcoin started to crash in February, and on March 12-13, there has been an actual crash. For a quick period, Bitcoin fell under $4,000, accordingly dropping over 1/2 of its price. This situation also affected other coins. For example, if on March 6, Ethereum cost $244, then 6 days later its price fell to $106.
The main viable reason for the crypto’s collapse is the developing reputation of cryptocurrencies amongst conventional investors. After 2016, primary players like the JP Morgan employer became increasingly more curious about the brand new marketplace, investing in cryptocurrencies and associated projects. When such big brands and companies accept crypto as a valuable asset, this links cryptocurrencies with other traditional currencies like USD or gold.
In such volatile conditions, the longer term of the crypto market stays unclear. Optimists consider that the imminent halving in May (lowering the price for adding one block of Bitcoin) and additionally the necessity of people to invest in something more reliable than conventional assets, will cause a repeat of the explosive increase of 2016.
Pessimists believe that the potentialities of cryptocurrencies inside the worldwide crisis are very doubtful, and even halving now won't cause another rise in price. Although, only time will show what actually happens next.