Crypto Amidst COVID-19: How Is Bitcoin Coping?

As the seconds pass, COVID-19 continues to wreak havoc at an alarming rate, affecting millions of people around the globe. The damage is massive, even prompting WHO to declare it a pandemic earlier this month on March 11, 2020. As a seemingly feeble effort to slow down the spread of infection, extensive quarantine measures and even total countrywide lockdowns have taken place. People are shutting themselves inside their homes and establishments are closing or are forced to close indefinitely. The world is now experiencing a major disruption in economic activities. Amidst this financial chaos, how are Bitcoin (BTC) and the crypto world holding up?

Since 2010, Bitcoin took the lead and introduced the world of cryptocurrency to the financial market. The so-called “Bitcoin believers” soared in numbers as more investors lean on BTC as a faster and more secure possible substitute for the fiat money system. Despite being on the volatile ground, we witnessed BTC peaked at nearly $20,000 in 2017 before jumping in a roller-coaster ride in the following years.

 Bitcoin’s historic spike in 2017, PrimeBit WebTrader

Yet again, BTC stumbled down when it was just about to climb up to new heights. As panic brewed during the coronavirus pandemic earlier this year, BTC plunged to $8000 despite reaching the $10,000 high in February. Then on March 20, BTC climbed back to nearly $7000 from resting at $4000 on March 16, a 75% price increase in 4 days. This is truly a volatile period for Bitcoin. But is the circumstance bearing towards the bad for this cryptocurrency?

Bitcoin price jumps in February and March 2020, PrimeBit WebTrader

As the financial markets suffer sharp losses around the globe, central banks will pump liquidity into markets, which will likely result in a deflation of fiat money value. On the other hand, BTC has a finite supply and can maintain its value as fiat currency values drop due to inflation. People are also preferring digital forms of financial exchange due…

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