How COVID-19 impact Bitcoin price and Cryptocurrency?

Key points

  • Due to the Covid-19 situation, bitcoin price riched to $5K in march 2020 with a market
  • The price of bitcoin is not fixed, and also the laws are not changed by the government of
    many countries on bitcoin, so till then bitcoin has to suffer many issues.
  •  After the fight again coronavirus, bitcoin will also take the rise in its price.

The pandemic disease COVID-19 has made an impact on all financial markets across the world which also includes cryptocurrencies. But it is said that bitcoin will change this soon. Since this outbreak, the correlation between the market and bitcoin has raised its value. Like for an instance, the bitcoin price fell to $4k or below this when the S&P index saw the sharp fall and the reason behind this was the liquidity. And so several investors had margin calls based on equity which need to be covered by liquidating many other resources into cash such as bitcoin for meeting the margin calls anywhere else.

Due to the COVID-19 market crash, the bitcoin price rose to $5K but it started recovering soon. Thus the price is now recovered to around $9K which will probably rise before the prices soar up again. Many things will show up and bitcoin is not an exceptional case. But the correlation seems to be coming up in between the Bitcoin and S&P. The main issue is that the liquidity crunch has spooked the investors and some makers of the market too. And by this, it is predicted there will be a rise in the price of bitcoin again. Few inefficient miners need to shut down because the overall economy is now in the worst situations and faces some crisis.

Is the rising price of bitcoin the haven when most of the options of investments look unprofitable?

Bitcoin is now very far away from becoming gold or silver even though its trajectory recently looks very similar. Several narratives surround bitcoin, but the largest one still stays the fact that most volumes are because of trading.

The Supreme court has lifted the ban on cryptocurrencies in India, so can bitcoin become
the new things for investors?

This seems very unlikely in this current situation. Nothin matters apart from survival. People want liquid assets and cash as they are not looking for other resources such as property or even illiquid stocks, only crypto.

Then what will happen for bitcoin when the economy of the world slowly starts recovering?

Covid-19 has a big effect on the nascent field of cryptocurrencies. We all are dealing with several problems such as liquidity,regulations, scams, and so on. This has been added to the list of stress, but new companies are going to build interesting products but there are still several ambiguities around bitcoin today. It can be known as the mainstream asset, it is yet to be institutionalized. Governments of every country need to take many new steps for regulation and make it easy to hold, buy, or sell bitcoin. Till this thing occurs, the industry of crypto will continue to struggle with all issues that have been highlighted by the COVID-19 situation.

Bitcoin is immune to COVID-19!
Now the world is facing the problem of unusual nature here the outbreak of the virus in Asia was first known as looming, but now it forwards to the collapse of several companies and its economies. It threatens the disruptions in the regulation of supply chains at the international level which can be forged by sweat, global wars, blood, tears, co-operation, technological advancement, and world progress made over several decades. Due to pandemic Covid-19, people believe the digital money to be safe and secure to use for providing remote payments. As it is more important to handle the risk of infection by a physical currency, and so it is preferred electronic payments. Bitcoin may be at the beginning phase of the lifecycle and its value or price is not known in the future but it has the most promising and exciting currency development with the development of fiat currency. It has raised the imagination not only of billionaires but also the general public for accepting the option of fiat currency and metals. Bitcoin is the asset that has unlimited potential in terms of growth of the price.

As the world fight against the COVID-19, the price of bitcoin will grow more.


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