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Updated on: Wednesday, June 16, 2021, 01:27 PM IST

Impact of COVID-19 on Cryptocurrencies

Photo Credit: Pexels

Photo Credit: Pexels

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Coronavirus or COVID-19 has created havoc in the history of humankind. It's no less than a disaster we are going through. Sustaining in this time seems the only way to survive.

While the pandemic caused several commodities and assets to lose their value, the cryptocurrency market, on the other hand, was found immune to coronavirus.

From approximately $7000 in March 2020 to more than USD 54,000 to date, Bitcoin has boomed and astonished the whole world.

Investors have doubled or tripled their fortune. Some made millions in a year, and some became Billionaires.

It's absolutely inappropriate considering this global epidemic as the reason for the growth of the crypto market. It's important to look at the facts and figures and analyse every corner.

So let's see how COVID-19 has impacted the overall Crypto Market.

Positive Impacts of COVID-19 on Cryptocurrency

The volatility of the market is inevitable. Still, people were buying cryptocurrency that has made the crypto market appealing among the crowd.

● The prices had gone down to half in March 2020, alleviating as low as $ 3,780. Since then, Bitcoin has gained so much wealth and popularity in the pandemic.

● Sentiments have been way too bullish that pumped the Bitcoins and Altcoins, surpassing several existing records. As of now, the market cap of Bitcoin has a staggering of $1.1 TN, comprising half of the cryptocurrency market, which is over $2 TN.

● While other commodities were losing worth, cryptocurrencies, on the other hand, were proving themselves as a reliable asset in these tough times.

● Despite this deadly outbreak, Cryptocurrency exchanges in India kept on expanding their business and their figures. Also, this led to the opening of new Bitcoin Exchanges in India as well.

Months back, RBI had banned cryptocurrency since the illegality was the reason. But soon, the Supreme court of India quashed the ban stating that these aren't regulated yet but aren't illegal too.

Despite the threat revolving over cryptocurrency, the volume in India itself is 8 million holdings up to 100 billion rupees corresponding to tokens held by Indian investors.

In the beginning, speculation analysis helped investors to book profits. But as time passed by, people realised that it's more secure and a safer means of exchange and can be a reliable asset in worst cases.

Cryptocurrency Exchange in India like WazirX, CoinSwitchKuber started expanding their business and doubled their fortune.

Several Bitcoin Exchanges in India opened up that allowed newbies to invest and trade Bitcoins.

Negative Impacts of COVID-19 on Cryptocurrency

Well, no coin is single-faced. If the value and market had swelled up, there must be other things that have shrunk because of coronavirus.

● Indeed the equities have increased since the outbreak. However, some analysts believe that this sudden spike won't last forever. Bitcoins are way far from a safe haven like Gold and Silver.

● The crypto is uncertain and unregulated in India yet. That is leading the sentiments to go on a negative note since the crypto market is experiencing this threat revolving over its head.

● Bitcoins are still yet to be accepted as a norm in many countries. Yes, it's still mainstream, but this unexpected outbreak has turned some moods against the Crypto investment.

The positive side of cryptocurrency is that the market is acting as a safe haven and a reliable investment.

The market is quite nascent as of now. It's because the value and consideration had swelled amid the pandemic. But it can lose its worth anytime since the scams and liquidation issues exist till now.

The result is still awaiting. If it's legalised, it can peak and cross its all-time highs, and if the rules go against the favour, it can severely affect the world.

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Published on: Wednesday, June 16, 2021, 01:27 PM IST
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