The COVID-19 pandemic now has its grip firmly on the world. According to official numbers, almost 2.6 million individuals have been infected globally, and almost 180,000 have died. In addition to the impact on public health and the healthcare system, the global economy is starting to ground to a halt as a result of state-enforced measures to contain the spread of the virus. The International Monetary Fund estimates that the recession in 2020 is going to be bigger than in 2009.
The novel coronavirus affects everyone in some form or another. The crypto industry is no exception. Once relative normality will return, there will be winners and losers coming out of the crisis.
Who might be the potential winners and losers in the crypto market?
For many Bitcoiners it is hard to envision for Bitcoin (BTC) not to come out stronger than ever before. While the world’s leading digital currency may not have acted as the safe haven against a stock market collapse some pundits have touted it to be, it is still believed to be a safe haven against an economic meltdown.
Moreover, the Bitcoin halving is only weeks away, and the price of bitcoin has historically always rallied in the 12-18 months following a halving. It doesn’t mean it is going to be the case this time also. In either case, those who are bullish and still have capital to deploy into digital assets are most likely going to place it into BTC as opposed to altcoins.
Companies that are primarily dealing in bitcoin – especially the buying and selling of bitcoin – might come out as winners also.
The recent drop in the price of bitcoin and the subsequent recovery has generated a spike in trading volumes as the bulls and bears are fighting it out on where BTC will go next. While that does not mean that all exchanges will come out unscathed from the crisis, those who have positioned themselves as go-to fiat-to-bitcoin gateways in their region might do…