Introduction
Coronavirus has caused disruptions in industries all across the world. People are dying from widespread infections and other complications. Those who have survived the pandemic until now have not made it completely unscathed until now. Everybody has been affected by this pandemic for the worse. However, the pandemic has also proved to be a boon for some industries. The online retailing industry has experienced amplified growth during the lockdowns. Another industry that has been affected because of the pandemic is the Crypto industry. Crypto trading has been affected by the same. Let us delve deeper into the topic and analyze the effects of Coronavirus on Crypto trading during the https:/immediate-edge.co.
The boom in the crypto industry
Although there are no theoretical, claims that correlate the pandemic with the boom in the crypto industry directly, observations do point towards it. Since the onset of the pandemic, the value of Bitcoin went from $7,300 to $46,800. This equates to a 640% rise in value. However, one important factor that can be attributed to this contribution is the resistance to inflation showcased by Cryptocurrencies. Investors have been afraid of losing money because of inflation and other economic failures. However, investing in a profitable currency can help overcome this issue, while helping you gain profits as well. It was further observed that the volatility induced in the crypto market allowed more people to enter the crypto trading industry. The collapse of the crypto market on the 8th of March 2020 was brought around because of the massive sale of cryptocurrencies. This was followed by low rates of cryptocurrencies. Investors saw this as an opportunity to invest more in the crypto industry. Thus, crypto trading grew to a considerable extent owing to the market collapse during the lockdown.
Relations between increasing Covid19 cases and the total market cap of the crypto industry
Initial observations suggest that a positive correlation was found between the number of new cases found every day and the total market cap of the industry. However, prolonged exposure to the pandemic and the lockdown had the crypto industry acting differently, as a “U” graph was observed. This can be attributed to the fact that people were panicking initially. This led to intensive investment runs in the crypto industry that witnessed many new investors taking money from traditional investments and putting it into the crypto industry. However, as the dynamics of the market became clearer, people started returning to the conventional investment methods.
Crypto trading platforms and their growth
Crypto trading platforms allow us to buy/sell cryptocurrencies whenever we want to. Trading platforms like WazirX and Coinswitchkuber have made so much profit and enhanced their worth over the year. Thus, it can be stated that the impact of the pandemic on Crypto trading platforms has been positive. It has been implied from the points made above, is that the crypto market is not just a fad and is a legit source of income for investors. Initial skepticism has now turned into a firm belief in the crypto industry.
Crypto mining holds a big share in the crypto market
Crypto trading has witnessed a further boom before the growth in the mining industry. More investors are investing in hardware for crypto mining in countries that are supportive of cryptocurrencies. Many governments have taken a stern stance against cryptocurrencies after the onset of the pandemic, owing to the increasing frauds and liquidation issues. However, countries like the USA are supportive of Crypto mining and trading. China witnessed a major shift in this regard, as the Chinese government led a massive crackdown on miners in the country. All these aspects have had a positive impact on crypto trading.
Although concrete evidence supporting the correlation between increases in new Covid cases is missing, one can observe that the crypto industry has grown intensely. Several factors that can be attributed to this growth have been explained. However, the stance of governments across the world can change quickly and lead to losses for investments. Thus, one can state that both positive and negative impacts of the corona virus upon crypto trading have been observed. Investors can incur heavy losses if these aspects are not researched properly.
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