The cryptocurrency market has been volatile amid the COVID-19 pandemic which has also caused other traditional investments to crash. The fragile status of Bitcoin as a “safe haven” commodity seems to have been further rattled by the outbreak of coronavirus. Crypto Market Gains Amid COVID-19 Pandemic.
The much talked about effects of Coronavirus on bitcoin was noticed when BTC’s price peaked at over $10,000 through much of February. Mostly due to people transferring their assets to BTC from fiat currencies and other markets.
Nonetheless, analysts and speculators alike, who expected that with the continuous spread of the Coronavirus, Bitcoin’s price will continue to grow, were proved wrong with time.
The rise in Bitcoin was followed by the worst crash in digital currency history, which saw it lose more than half its value last week in a series of panic sell-offs.
Bitcoin’s position as a “safe haven” asset had been debated at the beginning of the year, even before the coronavirus outbreak, now formally known as COVID-19. Short-lived geopolitical tensions seemed to briefly raise BTC’s price.
The collapse reflected the fortunes of conventional markets and came as a result of the COVID-19 coronavirus pandemic in the midst of global economic turmoil.
Bitcoin’s rebound last Thursday saw it climb to $6,000, having traded briefly as low as $4,000 a few days earlier.
It slumped 55% from the $10,500 high so far for the year.
Many analysts believe that bitcoin is unreliable and too sluggish to behave like electronic currency. Many fans of BTC see it today as a form of “digital gold.” Real gold has long been viewed as a safe store of value, and investors continue to see it as a form of protection against an economic downturn.
The response to the Coronavirus (COVID-19) is a mixed bag. We will have to wait and see how Bitcoin emerges amid the COVID-19 chaos.