Why did Bitcoin rise during the epidemic (Is the epidemic good or bad for Bitcoin)?
During the epidemic, why did Bitcoin rise? During the outbreak of the coronavir
During the epidemic, why did Bitcoin rise? During the outbreak of the coronavirus, Bitcoin has attracted widespread attention. Since November 2018, Bitcoin has been on an upward trend, and its price has also been rising. Looking at historical data, Bitcoin’s price trend after the epidemic this year has shown a similar pattern. February 14 was the first weekend in mid-January 2020. At that time, it was widely believed that Bitcoin would experience a surge. Starting at 2:00 PM on January 16, BTC continued to rise, reaching a high of 59,000 USDT. This round of gains was mainly due to the comments made by Janet Yellen, the newly appointed US Treasury Secretary, regarding the government’s economic lockdown and monetary tightening measures. On the night of March 22, Bitcoin broke through $60,000, rebounding over 15% within 24 hours, reaching a near three and a half month high.
With the global economy in a recession, countries are facing uncertainty, which is a major test for the cryptocurrency industry. However, despite this, many people remain cautiously optimistic due to the loose policies implemented by countries in response to the impact of COVID-19 and other factors such as geopolitical tensions, leading to a current market sentiment downturn where people are increasingly concerned about the risks of inflation, declining unemployment rates, or other financial crises. So why did Bitcoin rise this time?
1. Traditional investors purchase assets in a different way than traditional stocks.
2. There is a new asset class that allows for portfolio diversification.
3. Due to the property of digital assets as a store of value, they can be used for payment purposes.
4. The highly volatile “irrational” fluctuations may trigger some chain reactions.
5. When investors shift their attention to safe-haven assets or hold a large amount of gold, they may find that they do not have enough options to invest in gold for trading.
6. Why does Bitcoin have such great prospects during the epidemic?
1. Over the past few years, Bitcoin has proven to be a good choice in the long run. The second reason is that its own technological characteristics are very important. The third reason is its strong determination to fight against inflation. The fourth reason is that blockchain technology can improve efficiency and reduce costs.
5. If Bitcoin is considered as a means of wealth storage, it means that it is an asset that can provide wealth management services to individuals.
6. Although Bitcoin is seen as a secure and portable asset, in the coming years, it will become a more trusted investment target. It can not only play a role in daily consumption, but also be applied in healthcare and other fields. The last reason is that it has better security and scalability than most fiat currencies. Additionally,
Is the epidemic good or bad for Bitcoin?
According to the latest report from OKEx Research, the COVID-19 pandemic has caused a global economic stagnation. During the economic crisis worldwide, developed markets such as the United States are dealing with its potential impact and responding, while Europe and Asia tend to lean towards markets with higher liquidity, and the US dollar is showing a strong rebound. Meanwhile, due to the currency policies of some countries still being out of control, central banks around the world have started easing measures. Therefore, the cryptocurrency market is currently in a “panic stage”, and investors need to be cautious about the risks brought by related events and fluctuations in risk investments or the traditional financial sector. In addition, from 2020 to 2021, the price of BTC may experience a significant decline.
Under the influence of this news, the total market value of digital assets has declined. As of December 22, BTC was priced at $32,700 (-0.01%), with a 24-hour decline of 11.74%. BTC is currently priced at $35,517.38 USDT (+ 0.04%).
According to coinmarketcap data, among the top 100 cryptocurrencies, 88 have seen an increase in value while 9 have declined. EOS and XMR ranked in the top 20 with increases of 25.33%, 19.23%, and 17.32% respectively.
In comparison, ETH is currently in second place with a growth rate of nearly 30%, reaching 14.84%. LTC and BCH rank third. Other mainstream altcoins have performed poorly, such as BNB, XLM, DASH, and ADA, all of which have been affected.
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