The current pandemic has a substantial impact on the financial market and the global economy. Owing to this, a wide assortment of organizations was forced to shut down their businesses, resulting in a considerable decline in the values of the market.
The digital currencies were not an exception to that. It was majorly impacted by this sudden and massive change. Several currencies witnessed a significant fall in the value and are moving in the direction, like the traditional assets. To a certain extent, the crypto currency market has been resurgent. According to statistics, the rates of bitcoins, stable coins, and ethereum has shot up well up to 30 percent in the last few weeks.
The rise and fall in the prices of crypto currency
After thorough research at the crypto trading in the last 3 months, it can be said that the market is highly volatile like never before.
The crypto market has witnessed a boost as few of the major crypto currencies like bitcoin cash, Ethereum, XRP, has a significant price gain as the investors return the capitals within the digital assets.
While in the latter part of February, the bitcoin rates enhanced to almost $8,000 whereas, in no time, it reduced significantly to $6,000.
How did the current pandemic impacted Bitcoin?
The interrelation between the equities market and Bitcoin has enhanced since the outbreak of coronavirus. It has been noticed that on 12th March, the rates of Bitcoin has reduced to $4000. The industry has witnessed a sudden flight in the liquidity. A plethora of investors made margin calls within the Equity which need to be covered by the liquidation of different assets such as crypto into cash for the completion of those specific margin calls, Now, it might take some time for the rates to soar up again. Of course, there is a certain uncertainty about how things are going to pan out. While the recent movement shows that there will be a gradual increase in the rates.
What is the future for crypto currencies?
Covid-19 has a significant impact on the industry of cryptocurrencies. The world is trying to deal with certain problems. New companies are developing a bunch of interesting products. In addition to this, much ambiguity has surrounded Bitcoin at present. While it is gaining high popularity as the mainstream asset, its future is still unclear, though most experts believe bitcoin will prevail and even grow through these harsh times.
Thus, governments across the globe should take several bold measurements for regulating it, thereby making it easy to hold/ sell/ buy the crypto coins.
How the corona virus is affecting crypto mining hardware supply chain?
Coronavirus has a massive impact on the supply of crypto mining. In addition to this, the customers have found certain delays in the shipment from different manufacturers of crypto mining hardware owing to the lockdown. Such crypto mining operations need energy and hardware for operation.
Hence, they need human activity and spars management. But, due to the pandemic, mining manufacturers need to quarantine or self isolate for preventing the spread of the coronavirus. Also, as crypto mining does not include under the essential service, the supply chain has been stuck for some time due to the border and factory closures.
Stable coins is one of the premium classes of cryptocurrency which has been severely impacted by the spreading of coronavirus. This class has found an enhanced interest after the coronavirus outbreak. It is because the stable coins are known to possess lesser price volatility, as compared to the digital coins. Apart from this, people rely more on the future value of these stable coins over bitcoin as well as other digital currencies. In the midst of all these, customers are trying to patronize the stable coins. Such stable coins are now being used for trading in different crypto market activities.
While the majority of the financial analysts have issued a warning that the full effect of the coronavirus outbreak has still not been felt, Crypto assets and coins show us that the change may come sooner than expected, with this pandemic opening our eyes to many problems with the current state of employment, payments, businesses and everyday lives.
One thing for sure, Bitcoin and other cryptocurrencies are here to stay.