Cryptocurrency Demand Skyrockets: COVID-19 Makes Adjustments To World Order
Bitcoin shows a positive trend: over the past week, its exchange rate has been steadily at $7 000. This news became the basis for the prevalence of optimistic forecasts among cryptanalysts. Also, against the backdrop of the restoration of the flagship cryptocurrency, the demand for altcoins has increased. In general, this indicates an increase in interest in the crypto industry.
In favor of cryptocurrency, indicators of technical analysis of the behavior of digital currency over the past few weeks are in favor. After the collapse in March, many investors expressed distrust of Bitcoin, as a result, the Crypto Fear & Greed index remained at a peak level for a long time. Now the trend has turned in the opposite direction: key market indices speak about the possible continuation of cryptocurrency growth soon.
Last week was very successful for crypto: the market capitalization of the entire cryptocurrency market grew by $17 million. The price of Bitcoin for this period increased by 6%, the price of Ethereum (ETH) by 19%, Tezos (XTZ) by 20%. The growth of other leading altcoins is found to vary from 10 to 35%.
Why can Covid-19 really “warm-up” the demand for cryptocurrency?
Many authorities in the context of the spread of Coronavirus were forced to introduce measures that establish control over the citizens of the country. In particular, the introduction of a pass system enables the authorities to track the movements of citizens. The atmosphere of the authorities ‘ability to monitor financial transactions and citizens’ incomes is heating up even more. Many analysts believe that after the final victory over the pandemic, these measures will be abandoned. In such circumstances, many people are interested in cryptocurrency to have a refuge for their savings.
The spread of Coronavirus has already negatively affected the labor market. Small and medium-sized businesses are massively closed, millions of people are left without work and means for living. Those people who work remotely may no longer return to the office. This is just the beginning. Many analysts give disappointing forecasts: the world will feel a real crisis after the end of quarantine in all countries.
This global crisis can radically change the vector of development of the world economy, become a point of decline for those who used to be a giant, and stimulate the entry of new strong players into the market. It was in the context of one of these crises that cryptocurrency appeared. That is why the current global uncertainty may become the runway for cryptocurrency.