COVID-19 Decimated the Crypto Markets
No one predicted how significant COVID-19 would be for the crypto markets. In just a few days the price of Bitcoin fell from $10 000 to just under $4000. This price drop mirrored what occurred in the traditional markets and it could get worse. However, this situation may be the perfect opportunity for crypto to shine and cement its position on the world stage.
This is Crypto’s Time to Shine
Bitcoin was born out of the 2008 financial crisis as a solution to the centralized financial system that failed ordinary citizens. If crypto can stand firm as traditional markets plummet, it could demonstrate to the world the value of a decentralized global economy. Up until this point, Bitcoin and Alt Coins have been shown to be correlated with the stock market but we might see this trend change.
With the Halvening (an event cutting Bitcoin’s production in half) coming up in May, Bitcoin’s scarcity could rally the crypto markets in a bull run that puts the one in 2017 to shame. Current prices for crypto are at steep discount as a result of the pandemic, and I believe it is a great time to begin dollar cost averaging if you have spare cash. This is the perfect opportunity for new investors to get started with crypto. However, the crypto markets could slide further down so I wouldn’t recommend going all-in.
People are Locked In and Learning about Crypto
This pandemic has forced people to be locked in at home and they are spending most of their time online. Unlike the economic collapse in 2008, social media will be connecting individuals globally and keeping them informed. Search results for Bitcoin have increased and more people will begin to spend time learning what crypto has to offer.
COVID-19 continues to infect more and more people without an end in sight. However, it could also be the catalyst that spreads a wave of mass adoption. This may not occur soon but in the long run I think crypto will emerge stronger than ever.
So, what do you think will be the impact of coronavirus on crypto? Do you think we will see the beginning of a bull run this year? I’d love to hear what you have to say in the comments down below!
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