Bitcoin Will Emerge Victorious From The Crisis Caused By COVID-19
The spread of the COVID-19 pandemic has become a complex global problem that humanity has never before encountered. The blocking of borders, restrictions on the operation of enterprises, massive unemployment, and further uncertainty have forced many governments to resort to decisive measures.
Perhaps the United States went the farthest in this regard. The news that the Fed printed more than $2.2 billion to stimulate the economy, on the one hand, aroused approval, on the other hand, it sowed panic among financial experts. Many of them predict the onset of the Great Depression for the United States. Nevertheless, it can perfectly play into the hands of Bitcoin.
Helicopter money printing can boost Bitcoin increase
Today, due to massive outbreaks of the pandemic for the cryptocurrency, a favorable macroeconomic situation has developed. This statement is a red thread in the report, which was presented by Delphi Digital. In particular, the company’s experts estimated that the total amount of financial injections by governments over the past few weeks has approached $10 trillion.
By their actions, countries personally heat the degree of impending inflation. At a time when traditional assets are artificially kept afloat, Bitcoin continues to grow stably in a natural way, despite difficult market conditions.
Delphi believes that the weakening of traditional assets, the inability of central banks on an ongoing basis to artificially support them, could well become a catalyst for continued Bitcoin price growth. Also, do not forget about the Bitcoin halving. Previously, halving the flagship cryptocurrency was the driver for a record jump in its price. This serves as an excellent background for understanding that Bitcoin can follow the growth path this time too.
Bitcoin successfully builds strength
Recently, Bitcoin has significantly strengthened its position in the global financial infrastructure. In particular, the increase of Bitcoin relative to the Russian ruble amounted to 44%. Bitcoin also looks more confident against the background of Latin American national currencies. In particular, the growth of Bitcoin relative to the Brazilian real was 74%.
In a report, Delphi indicated:
“Under the current conditions, it is quite possible that the currency will depreciate and lose its former power and authority. At the same time, there is an increasing demand for assets that serve as safe havens for storing funds. ”
Bitcoin has once again demonstrated its viability. Despite the collapse in mid-March, the flagship cryptocurrency was able not only to quickly restore its market performance but also successfully jumped the line of $9,000.