How Coronavirus Impacts the Cryptocurrency Market and Trade?

Coronavirus in Brief

Coronavirus, also called Covid-19, started spreading from Wuhan, China, and in a very short period, it proliferated all over the globe. The cause of the virus is still under research. However, bats and pangolins are the prime suspects to carry the virus. The virus is deadly and causes lung failure, and symptoms are identified as cold, severe pain in the neck, high body temperature, loss of taste or smell, tiredness, loss of speech, and chest pain. Till date, 187 countries have been infected so far and numbers are only adding. The main reason for the outbreak of coronavirus is longer periods of symptoms identification and human to human transmission.  This virus can mutate, which might be more dangerous to human beings, and few mutants have been recognized till date. The virus is lethal and has influenced the social and economic conditions.

Impact on Life and Global Economy

Coronavirus is a big threat now to all human beings despite large or small economies, thus locking down all social and economic activities. People cannot go outside their homes due to which economic stability has degraded day by day.  All countries are trying to combat the virus with the help of pumping money for medical up-gradation, testing kit development, mask production, and food security. This may cost almost or more than 2 trillion-dollar worth throughout the world as per the United Nations. 86.60 Trillion dollars is the economy of the world, which means 2.31% of the world economy may be vanished by just an invisible COVID-19. You can understand this either of these Italy, Brazil, Canada, Russia, South Korea, Spain, Australia, Mexico, or Indonesia’s economy is under 2 trillion dollars. In other words, Covid19 is trying to spoil the economy as bigger as either of the listed countries.

Cryptocurrency Volume and Trade

Overall the volume of trading cryptocurrency has been come down by 4.17% from May 10, 2020, due to the pandemic. However, the average monthly growth is positive with 3.11%, whereas Binance, bitFlyer, Bitmex, HitBTC, and Liquid are the top volume generator as per theNomics.com report. The Bitcoin price has kept on increasing since the past 6 weeks, which is a good sign for crypto trading. This shows that confidence in Bitcoin is escalating even in a pandemic situation. Altcoins have also maintained their trade volume as normal. Traders are trading like any other day.

Growth of Cryptocurrency after End of Virus

It has seen the correlation of Bitcoin and gold than top-level stock indexes like the S&P 500. It was observed that Gold and Bitcoin were highly correlated last month in March 2020, which affirms Bitcoin as digital gold. You might have noted one important thing in March when crude oil was falling below zero; then, cryptocurrency was still bullish.

Therefore, coronavirus affected cryptocurrency with less magnitude as compared to other financial assets or commodities.  Few top-class agencies suggested that it will hit above $15000 per Bitcoin till the end of 2020. Kraken also said that Bitcoin’s price might reach $350,000 by 2045. Hence, Cryptocurrency has the opportunity to grow in the upcoming days.

Conclusion

Today’s main problem for human beings is COVID-19, as this virus has killed more than 3, 12,000, whereas 2, 14,000 people were killed by the atomic bomb in Japan in 1945. These death numbers are exponentially increasing every day. Additionally, Covid-19 is the devastating economic condition of all countries, which is causing hyperinflation. Many currencies of the world are devaluating despite the economic packages pumped by the International Monetary Fund (IMF) and by other countries themselves. Besides these, cryptocurrency has not been affected devastatingly, and users of cryptocurrency increased in the pandemic time. Trading is going on as usual in the crypto market. Not only cryptocurrency but other digital payment system has also been getting bigger.