Bitcoin is the dominant element when we consider trading cryptocurrencies. The sudden outbreak of the COVID-19 AND ITS EFFECT has reformed the economic and monetary policies all over the world. The surge in prices of commodities and assets have pushed the price of Bitcoin unexpectedly.
- The volatility of Bitcoin and the psychological impact of COVID-19 AND ITS EFFECT :
The COVID-19 AND ITS EFFECT has affected all aspects of life, and the digital currency Bitcoin was one of the affected.
- The psychological state of every individual was affected, especially those investing in the crypto market.
- Covid-19 positively impacted the price of Bitcoin until it had skyrocketed again.
- The absolute lockdown of stores and every marketplace caused an upsurge in online marketing and technologically oriented life.
- The transaction rate of Bitcoin and online exchange has risen significantly because everyone performed their life functions from home.
- Bitcoin had a positive impact on social encouragement, cyber security, government management and significant trading activities. Trading cryptocurrencies online can be a hustle for any beginner. Check the traditional bitcoin exchanges advantages and disadvantages to learn some special techniques for trading online digital currencies.
- Several influencers reached out to the ones in need during the hard times and offered aid to the government to cope up with the economic drainage of the country by donating Bitcoin.
- This positive relation was perceived by utilizing data from several institutions present all over the world.
- The investors of Bitcoin and Bitcoin miners from the two types of constituencies who majorly used Bitcoin for transactions and trading.
- According to many researchers, Bitcoin played a significant role during the pandemic. As per the nature of the virus, it was quickly spreading from one person to the other. The government imposed cashless transactions of money to cease any contamination of the virus.
- The broken economic state and shortage of fiat money worsened the cashless transactions, and people got more attracted to digital trading currencies.
- The idea of non-physical transactions of money in such a helpless situation had a positive impact on Bitcoin.
- Covid-19 and how it impacts the Bitcoin price:
Bitcoin and its features have greatly influenced society as the virus started impacting lives.
- The vast correspondence of the infectious virus has likewise regulated the price charts of Bitcoin.
- The surge in price was also because of the increased transactions resulting from complete lockdown all over the globe. Investors who had a lot of experience in the crypto market faced a lot of misery on losing a considerable amount of cash.
- Initially, the price of Bitcoin was stable, but the constant extension of lockdowns and the drowning economy had impacted its surging prices after a few months.
- The price of Bitcoin in March 2020 was approximately $8,100, and in August 2020, the price topped the charts reaching $11,000. Ever since August’20, the price charts have been facing volatility issues.
- Elements responsible for the fluctuating price:
Several factors can be held responsible for the volatility of Bitcoin and other digital assets.
- The exchange market started getting influenced in the wake of the pandemic.
- Financial backers began trading their specific portion of Bitcoin, which led to the decline in its price in the middle of the pandemic.
- Investors started selling off their portions to meet the monetary requirements of everyday life as the economic condition was getting worsened.
- Regardless of profit or loss, investors were busy selling their parts, and trading them was a common phenomenon that surged the digital asset price after a few months.
- Presently, cryptocurrency has shown up at its developmental price. Apart from all the things that have faced positive feedback during the pandemic, Bitcoin was one of them.
- Service sectors were closed, making many people jobless, and to meet the daily expenses, the women of the house took part in trading the digital asset.
Bitcoin has aided the financial structure of various nations and helped people to meet monetary expenses.