5 Effects of Coronavirus Pandemic on Cryptocurrency Trading


Coronavirus pandemic has been global for some time now. It looks like there isn’t any country or industry that hasn’t be affected by the phenomenon. As you are probably perfectly aware, the whole world stopped for about a month. The milestone for this occurrence can be found on the 25th of February 2024 when the number of cases in the world surpassed those that occurred in China. This is public information from the WHO. At the same time, global markets are hitting their historically low levels. If you are interested in some of this information, you can check Avatrade. At the same time, digital currencies were heavily affected by the global pandemic. Maybe it looked like they were going to be safer, but ultimately, it hit them too.

Just in March, we were able to see how worth of Bitcoin could drop down from 7,5k to 3,5k in a matter of days. Nevertheless, digital currency trading has been on the rise ever since. Recently, we have seen that the worth of cryptos started to grow again, Bitcoin in particular. We can credit this to the global trend of social distance. If you think about it, there are not many better ways you can trade safely, besides cryptocurrencies. Those who are into the industry are carefully following all the news regarding cryptos. Let us see all of the effects that this global pandemic has on the trading of cryptos.


The Skyrocketing of Crypto’s Value and More Investments

About a month ago, we could see that the combined prices of the digital currencies reached $14 billion. This means that the combined value of them all is around $155 billion. The crypto that witnessed the highest growth was Bitcoin with an increase of 10%. Currencies like XRP and Ethereum also had a significant growth. According to cryptocurrency experts, investors are seeing this global situation as a perfect time to invest some money into the digital currencies. It looks like the time after the pandemic will be the era of the cryptos. Even though fears about the global situation are not calming down for a month and a half, investors are not giving up their original idea.

Increasing Number of Different Traders

After the massive decline and the dramatic growth of digital currencies, we cannot help but ask ourselves, how will this situation affect the traders? Even though the uncertainty that surrounds digital currencies is what makes them exciting in the first place, it’s not something that is harmless for the investors and traders. It looks like traders, while they are in self-quarantine, have a lot of free time to follow all of the conditions on the market. Thankfully, today we have a plethora of tools we can use to monitor certain markets and to receive all the changes in the market in a matter of seconds. As you are probably aware of, cryptos primal nature is to be decentralized. This means that it can accept all kinds of traders who would want to participate. It looks that the main effect on traders is that there are going to be many more of them in the future.


Exchanging is Untouched, But…

All the biggest digital currency exchanges like Gemini, Bitstamp, OKEx, and Kraken have been untouched by the global pandemic and all of its influences. They have been working like nothing is going on in the world. All of these are reporting a massive growth of trading volumes and sign-ups. At the same time, the massive spreading of coronavirus in Asia didn’t have much influence. We can see that on the 5th of March, Huobi Thailand was launched. At the same time, other to exchanges like Bitfinex and Poloniex didn’t delay their unveilings planned for April 2024. The reason why coronavirus doesn’t have much influence on the growth of the exchanges is that the highest percentage of their activities remains digital. The only thing that is affecting exchangers is that people were selling their cryptos and withdrawing cash for almost a month. This is something that they need to fight in the future.

Cutting Some of the Staff

One of the things that look unavoidable when it comes to the global pandemic of coronavirus is that people are going to lose their jobs. There are many examples of this happening in many other industries. This will have an effect on the blockchain companies and cryptos. Moreover, some of them even faced some of the consequences. For example, we recently saw the information about Ethereum’s development company, called ConsenSys decided to fire roughly 15% of its employees. This is a direct effect of a global pandemic. This is official information that was even released as a statement from the company itself. Without any doubt, many other firms are going to face the same problems, but besides this information, we don’t have any other regarding blockchain companies.

The Reshaping of Blockchain Geography

One of the things that could be heavily influenced by the coronavirus pandemic is something that we could name Blockchain geography. Instead of explaining it to you, our reader, we are going to give you a few examples. The first one is that China, who reportedly beat the COVID-19, announced that the launch of the early announced national blockchain network will be finished in April. This was the date that they scheduled even before the pandemic started. At the same time, Russia will face some hardships when it comes to digital currencies since the pandemic postponed adoption of a law that could ultimately lead to the creation of national digital currency. When it comes to New York, the hottest spot when it comes to blockchain in the United States, it closed all of the companies for the time being.


The Conclusion

It looks like cryptocurrencies are going to have a similar fate to many other industries after the global coronavirus pandemic. We presented you with several effects of the pandemic to the cryptocurrency trading. Predicting the future of cryptos at this time is not something that’s easy to do. There are a lot of uncertainties that are surrounding the whole situation. However, there are several things that could give us a slightly clearer picture of what we can expect from the future.