The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

How Covid-19 Pandemic Is Upsetting the Crypto Space and Other Financial Markets

by Demetrios Zamboglou
May 17, 2020
in HodlX
HodlX Guest Post  Submit Your Post
 
[the_ad id="93550"]

The effects of the ravaging coronavirus pandemic have gone much deeper than health issues, with repercussions and the ensuing lockdown crippling diverse sectors in the world.

Financial markets might be the most hard hit after welfare and health.

Key Points

  • Covid-19 causes global dip in financial markets
  • Cryptocurrency stomaching the corona effect better than other financial markets
  • What now after the pandemic?

Covid-19 ‘lockdowns’ markets at large

Following the outbreak of Covid-19, many affected countries were swift in taking palliative measures to curtail the spread of the disease by imposing lockdown measures and workplace restrictions.

Months into the lockdown, it has become obvious that physical restrictions are just as likely to trigger negative spirals in other sectors, with economies and financial markets most at risk. A week before the month of March, financial markets suffered significant dips after taking a while to react to the pandemic. The last days of February and early March saw US stocks lose more than 12% of their market value or roughly $4 trillion. The stock markets in Europe and Asia also saw drastic losses that rivaled the 2008 global financial crisis.

The cryptocurrency market was also affected. The second week of March saw the price of BTC drop below $5,000 despite earlier optimistic predictions in light of the bankable Bitcoin halving catalyst. Before the drop, concerns were raised about the lockdown in China, given the country’s control over roughly two-thirds of the Bitcoin mining industry.

Crypto markets still fare well in comparison

BTC and the crypto market, in general, have fared no better during the pandemic, compared to other markets, with BTC recovering by more than 80% since its dip in March. Bitcoin has long been regarded as digital gold, and it certainly hasn’t performed poorly this year since its recovery. In fact, it has outperformed both US and world stocks by posting a loss of around 5% compared to respective drops of 13% and 16% for the S&P 500 and MSCI All-Country World Index.

Economists and analysts suggest that BTC and the cryptocurrency market has benefited the most from the injection of stimulus packages by different governments, as the market poses more potential for quicker returns compared to other investments.

How cryptocurrency compares to gold as a safe haven amid the pandemic

Bitcoin is being lauded for its impressive bounce back since March. But its promise as a safe haven and as a digital gold may be premature. In fact, while BTC’s 5% loss has been considered a positive for the cryptocurrency market amid the pandemic gloom, gold itself has posted impressive numbers and accumulated significant gains since the turn of the year. While Bitcoin is fighting hard to prove its resilience with a meager loss, gold has risen in value, surging at least 11% this year.

“The idea that it is a safe haven in the manner that gold is – I don’t think recent moves bear that out,” said Sui Chung, an analyst at the crypto company CF Benchmarks.

According to Motley Fool contributor Dan Caplinger, the reason why cryptocurrencies plunged along with the stock market is that people and investors now see cryptocurrencies as more of a ”risky asset” compared to before.

“… cryptocurrencies had essentially lost their safe-haven status and were once again perceived as a risky asset. That’s inconsistent with the basic investing thesis many cryptocurrency investors have in justifying their Bitcoin holdings, and if it’s true, it would potentially be a big blow to the idea that Bitcoin offers a safe alternative to fiat currencies and assets that are tied to those currencies.”

When will crypto’s next bull season arrive?

The market is always unpredictable, just like cryptocurrencies. Experts can claim that a bullish trend might come soon, but it is still a big gamble.

For now, though, we’re seeing a massive Bitcoin comeback as it continues to rise in value again. The climb has been steady for weeks now, a most positive development amid the gloom of the lockdown period.

If BTC’s positive trend continues, we can only cross our fingers and hope for the best – including a global victory over the pandemic itself. We will wait. And stay safe.


Demetrios has an extensive background in foreign exchange, financial technology (fintech) and sales, as well as senior management. He has held various managerial and C-level positions in London and Cyprus for both small and large businesses alike. Demetrios also has strong experience with high-net-worth clients and managing institutional risk exposure in highly regulated and emerging markets. 

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
[the_ad id="95413"]

Featured Image: Shutterstock/Supamotion

Submit a Press Release

Industry Announcements

  • Core’s Revolutionary Satoshi Plus Consensus Marries Decentralization, Security and Scalability
    March 30, 2023
  • Lost Worlds Launches Version 2.0 of GeoNFTs in Web 3.0 Platform
    March 30, 2023
  • Script Network, SingularityNET and Stacks Bring Practical Solutions to Real-World Issues
    March 29, 2023
  • OKX To Open Office in Australia
    March 29, 2023
  • Metacade Raises Over $14.7 Million As Presale Sets To Close in 72 Hours
    March 29, 2023
  • Binance Expands AI-Powered NFT Generator Bicasso
    March 28, 2023
  • Open-Source Blockchain D-Ecosystem Raises $6 Million Ahead of IDO on March 29, 2023
    March 27, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$27,885.47
$27,885.47
1.34%
Ethereum
$1,774.26
$1,774.26
1.48%
Cardano
$0.372538
$0.372538
3.86%
XRP
$0.536301
$0.536301
2.74%
Dogecoin
$0.07421
$0.07421
2.09%

Spotlight

  • Morgan Creek’s Mark Yusko Says There’s No Chance Government Can Ban Bitcoin (BTC) – Here’s Why
    March 29, 2023
  • Quant Trading Firm Accumulates Nearly $800,000,000 Worth of USDC and Ethereum in One Month: On-Chain Data
    March 29, 2023
  • Top Analyst Issues Bitcoin Alert, Says BTC Flashing Bearish Signal Under the Hood
    March 29, 2023
  • 687,170,000,000,000 Shiba Inu (SHIB) Now in Hands of Long-Term Holders: On-Chain Data
    March 29, 2023
NBX Warsaw Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl