Crypt currency shows maximum growth since last October
The market for crypt-currency that had been falling all last week on Thursday started to grow rapidly. Bitcoin has risen by almost a quarter in the last 24 hours, recouping all that was lost in the previous seven days. The coronavirus helps the market of digital currencies to rise in the same way that collapsed it.
The market for cryptocurrencies is growing again. In the last 24 hours, the market capitalization of all cryptocurrencies, according to Coinmarketcap, has increased by about 20 percent – from $ 157 billion to $ 187 billion. This is the first significant growth in digital currencies since the coronavirus spread around the world.
The most popular currency, Bitcoin, has risen by almost a quarter in the last 24 hours, surpassing the $6700 mark in online trading today.
Such a rapid rise in the cost of bitcoin has not been seen since last October!
Thanks to this jump, the digital coin has won back everything that was lost over the past week.
However, it’s too early to talk about a full recovery. Back on March 12, about $8 thousand was offered for one bitcoin, and a month ago the crypt currency was worth about $10 thousand. But the COVID-19 pandemic led to a collapse of currency markets and stock indices. In the face of a sharp drop in production worldwide, closed borders and a slowdown in the world economy, cryptocurrencies, which were traditionally considered a way to keep savings in difficult times, began to suffer. The fall in their quotes was facilitated by the mass withdrawal of institutional investors from the market, who suddenly found themselves in difficult conditions and began to sell their crypt-currency assets, trying to build up their liquidity reserves.
Is it worth buying a virtual currency?
Finally, bitcoin is steadily approaching halving – the moment when the network will be halved awards for miners (release of new bitcoins). This should happen in the middle of May, and this event always entails a long-term rise in the price of the cryptocurrency. At least, this was the case in the previous two cases, so bitcoin to PayPal conversion will definitely help you.
Paradoxically, the same coronavirus is still helping the cryptocurrency market to recover. Following the decisions of central banks of several countries, the U.S. Federal Reserve and the ECB to maintain or set minimum interest rates, as well as the launch of programs to maintain dollar liquidity, the dollar began to noticeably strengthen its position in relation to other world currencies.
Investors are again choosing the American currency as the most reliable way to save assets.
Because, for example, the pound has fallen to its lowest level against the dollar since 1980, and the Australian dollar – to its lowest level in the last 20 years. So the Japanese yen, and even the Swiss franc – currencies that are traditionally considered a safe haven in any storm in the financial market. The second instrument of saving, after the dollar, investors have again become crypt currencies – other currencies, which have proven to be a reliable way of hedging, simply does not remain.