The global economy and financial markets have been hit hard by the spread of Coronavirus and restrictive measures taken at the government level. Large central banks have implemented a package of financial initiatives aimed at stimulating the economy to delay default. Despite the “Black Thursday” on March 12 and the record bitcoin collapse, the flagship cryptocurrency was able to recover and move in the direction of an uptrend. Crypto trading volumes increase by 61% in the first quarter of 2020 compared to the same period in 2019.
Bitcoin has established itself favorably against the background of the gold and stock market
The spread of Covid-19 affected the economies of all countries, without exception. The introduction of quarantine, the termination of air travel, passenger traffic, hotels and many other service companies have already brought a loss of a multimillion-dollar amount. The situation is aggravated by rising unemployment.
The collapse in the stock markets, the fall in oil prices below $20 per barrel, further exacerbated the situation. While the price of Bitcoin fell to a record low of $3,800 on March 12, gold fell in price to $1,579 per ounce. Today, gold rose by 5.3%, its price is $1,661 per ounce. Meanwhile, the price of Bitcoin has soared 90, 78% since the collapse.
On “Black Thursday”, the volume of crypto trading amounted to $70 billion. Leading expert Stephen Zheng analyzed trading activity on cryptocurrency exchanges and came to stunning conclusions. According to the data, volume of trades in first quarter of 2020 amounted to $154 billion. This is 61% more comparing with to the same period in 2019.
Trading crypto activity increased by 1000%
Over the previous month, an increase in P2P trading volume was recorded in countries such as Argentina, Colombia, Sweden and many others. According to Chainalysis, in mid-March, transaction volumes on blockchain platforms grew by 9 times.
After blocking borders in the UK, there was a record surge in activity on the cryptocurrency market. In late March, London FinTech announced an increase in trade in the cryptocurrency market of 1000%. Of the total volume of trading operations, 90% was the purchase of cryptocurrency. In British Mode Banking noted:
The “helicopter money” can now save many countries, but in the near future it can turn into a protracted crisis. Today, cryptocurrency looks more confident than traditional assets.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.