As the coronavirus pandemic rages on, it seems like each day is worse than the last. Western nations are scrambling to take actions which should have happened weeks ago. The economy is about to enter a standstill and investors are beginning to pull back their capital as they lose faith in the stock market.
To stem the bleeding, President Trump is considering shutting down the stock market. This decision will impact the crypto markets but it's uncertain if it's good or bad. Here are a few consequences which might occur if the President were to halt the stock market.
1. Stock Investors will Start Trading Crypto
Before a shutdown occurs on the stock market, investors will scramble to liquidate their assets for resources to get them through this pandemic. The stock market will plunge before coming to a halt. However, these investors will still be looking to make money. With the traditional markets closed and businesses slowing down, their only option will be to turn to the 24/7 crypto markets. As more individuals flock to crypto, this could be the beginning of a wave of mass adoption.
2. Stock Investors will Liquidate their Crypto Holdings
It’s not a surprise that many traditional investors snub their nose at crypto. They feel that it lacks fundamentals, is unpredictable and is rife with scams/frauds. However, many investors and institutions also hold some position in crypto as a hedge against the traditional centralized economy.
If investors are unable to liquidate their positions on the stock market in time, they may turn to their crypto portfolios to generate liquidity. The price of Bitcoin and Alt coins have already plummeted from this type of move earlier this month, but it may slide down further.
3. Crypto will Make Global Headlines
The price of crypto falling from this pandemic may not necessarily be a bad thing since it provides newcomers the opportunity to enter the space at a steep discount. Many people who are locked-in from this pandemic are worried about their finances and some will discover crypto. With the whole world watching, this could be what pushes crypto back into the mainstream.
The price of crypto falling may upset some veterans in the space. However, I see this as an essential part of getting ordinary individuals involved in crypto. More accessibility to the masses will increase the demand and value of crypto.
However, this is just my opinion. What do you think about a stock market shutdown? Will it be good or bad for cryptocurrency? Share your thoughts and opinions in the comment section below!
Visit https://cancrypto.ca for more of the latest crypto news, reviews and guides.
