As a result of the Coronavirus pandemic, financial ramifications of the likes we have never seen coupled with government lockdowns have resulted in the growing anxiety and uncertainties amongst global populations – and for good reason.
Not only have the effects of the Coronavirus been detrimental to the health of millions but the monetary consequences resulting from the wildfire spread of this virus have been felt by hundreds of millions.
Businesses have long closed shops, all non-essential travel has been forbidden while countries have closed their borders without much of a realistic projection as too when these unprecedented times will pass and the normality of life may resume.
Among one facet of life and industry greatly affected to date from the Coronavirus includes the cryptocurrency sector, where the crippling effects have hit the crypto markets with sheer force and stifling precision.
Bitcoin, who many believed would serve as a safe haven, was swiftly dismantled and proven otherwise, losing 48% of its value within a 24 hour period on March 12th, 2020.
However, the panic-stricken effects of the Coronavirus don’t stop there.
Ethereum, Ripple, Bitcoin Cash, Bitcoin SV, Litecoin, and countless other cryptocurrencies all nosedived in relative relation with Bitcoin.
While for many the crypto markets have been deemed too volatile and unyielding from the start, there were undeniable market cycles and trends occurring while cryptocurrencies as a whole were becoming more accepted by consumers and businesses.
Now considering that these are unprecedented times, it is impossible for one to accurately predict the impending and unfound ramifications of the crypto markets that are to unfold in the upcoming months but that does not mean we cannot analyze the markets to acquire a better understanding of what exactly is happening – or at least try to that is.
Take for instance the rally of Bitcoin, which raised in value over 10% and amassed over $14 billion in market capitalization within a 24 hour period. Additionally, other digital coins such as XRP and Ethereum were also reflecting higher values between 5% to 7%.
This was a much-anticipated welcome after the harsh sell-off of Black Thursday (March 12th, 2020), where the cryptocurrency market plummeted and lost an estimated $93.5 billion in total market value.
Now the question steering in the back of people’s minds would be, what’s next?
If there is another surge of panic on investors sentiment like there was on Black Thursday then we can use recent history as a likely indicator of what’s to follow, meaning that it is likely that the market capitalization of the cryptocurrency markets will depreciate should the global economy become panic-stricken once more.
While countries and borders begin to open up, the probability of the second wave of outbreaks only increases, which in turn, increases the probability of the cryptocurrency sector becoming hit once more.
Despite these difficult times, however, crypto enthusiasts from all walks of life have proven how resilient they are while cryptocurrency over-the-counter trading volume has consistently been on the rise since Coronavirus become a familiar part of our news.
Michael Leon, an investor at Althena Investor Services in Chicago, which specializes in providing services to OTC clients, reported that “We have been seeing a significant uptick in volume…” Indicating that despite the Coronavirus fears on investor’s sentiment, consumers alike are becoming more involved with cryptocurrency trading.
Take for instance the 1-month growth of BTC over the past month, which has appreciated over 14% over the last 30 days.
These percentage values reflect the growth of each cryptocurrency over the past 30 days.
With the market capitalization of Bitcoin and other cryptocurrencies continuing to rise in value, cryptocurrency investors across the globe are more likely to begin investing actively once more.
Given that cryptocurrencies such as Litecoin, Bitcoin Cash, Ethereum, and Bitcoin SV have a strong positive correlation with Bitcoin, should the value of Bitcoin rise then theoretically so should the market cap of each of these cryptocurrencies and in respect, the cryptocurrency sector as a whole.
If one thing is for certain, it is that the crypto markets are more volatile than previously due to the wide-felt effects of the Coronavirus.
(Insert Volatility Image)
Will the bullish rise of the cryptocurrency sector continue? Only time will tell.
AdvertisementHi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of May…
World stocks scored a third straight record high and bond markets were rallying on Thursday…
Hi Traders! Today I am sharing with you the GBPCAD technical analysis and short term…
Hi Traders! EURGBP short term forecast update and follow up is here. On March 27th…
Hi Traders! GBPAUD technical analysis and short term forecast is here. We do our analysis…
Hi Traders! CHFJPY short term forecast update and follow up is here. On March 20th…