The Coronavirus brought deadly consequences and economic earthquakes as it rose to pandemic status. Aftershocks from the hit world markets recently sustained are still felt with no sign of stopping.
The situation is made worse by the reactionary and uncertain nature of the beast. Additionally, it appears as if each time the President of the United States offers unfounded or contradictory information, markets react, frequently in negative ways.
While the world of cryptocurrency has no inherent ties to the United States markets, recently crypto assets followed the same hair-raising path of minor ups and massive drops. Fortunately, it appears that cryptocurrency is moving along its own path and deviating from the volatile stock market.
In light of the pandemic, it is natural for investors question the security of their crypto investments. Experts are looking at several reasons for the recent volatility. However, for the moment, the performance of cryptocurrencies is far from bleak.
1. WHAT ARE THE CRYPTOCURRENCIES DOING NOW?
Bitcoin is rallying in a significant way. In around 24 hours the original and the most significant cryptocurrency saw an increase of 25 per cent. This was after all markets reacted sharply to the Coronavirus and the reports of social distancing, shutting down of businesses, and the mention of a tough road ahead. Ultimately, Bitcoin hit $6,951 in mid March.
Bitcoin’s success helped bolster the rest of the cryptocurrency industry. Ethereum, the second largest of the cryptocurrencies, rose in a similar manner to bitcoin and is enjoying bullish gains.
2. WHAT HELPED BRING ABOUT THE REBOUND OF CRYPTOCURRENCY?
Some speculative influences helped fuel the rise in cryptocurrency. Additionally, stimulus packages proposed by central banks around the globe added to an overall sense of reassurance.
3. ARE THERE OTHER POSITIVE SIGNS PERTAINING TO CRYPTOCURRENCY?
In Italy, the bank, Banka Sella, is preparing to begin using Bitcoin as a part of their trading service. Italy is on lockdown due to the deadly consequences of the Coronavirus. The recent surge in Bitcoin transactions led Banka Sella to look into cryptocurrency as a solution for payments and investing during this turbulent time in our world.
The nation of Venezuela, also impacted by a complete lockdown because of the Coronavirus, is reporting significant growth in citizens adopting cryptocurrency. Additionally, Peru and Columbia, South American nations whose borders closed because of the recent pandemic, are seeing increases in cryptocurrency use.
As the United States and other nations around the world contemplate complete national shutdowns, it is easy to speculate how growth in cryptocurrency use could occur.
The bottom line with cryptocurrency, as with other investments, is to stay on top of what reactions you see to various world events. However, resist the urge to panic and pull all of your assets. Remember, you are dealing with the long-term nature of investing where panic and knee-jerk reactions will harm your financial future and do not improve it.
Note: The information contained in this article is for informational purposes only. It does not constitute financial advice or guidance on the topic of cryptocurrency or any other investment. Always seek the advice of a trained expert before making significant changes to your investment portfolio.