The Coronavirus pandemic is literally sending shockwaves across the global economy. It is safe to say that every country is realizing the drastic effects of this major outbreak. In this scenario, even the cryptocurrency space is struggling, with massive volatility every now and then. All major cities across the world have been locked down to prevent the spreading of this virus.
New York state governor Andrew Cuomo is of the opinion that this lockdown could remain throughout the year. The burning question in the crypto industry right now is whether this crisis will majorly affect how Bitcoin fares or not. Many enthusiasts throughout the community consider cryptocurrency as ‘digital gold’. It would be interesting to note how crypto keeps up amid this global crisis.
Here’s New York Gov. Cuomo saying the coronavirus lockdown could last as long as 9 months and that up to 80% of the population will get the virus pic.twitter.com/ghsmthfRmU
— Aaron Rupar (@atrupar) March 22, 2020
COVID-19 Impact on the Stock Market and Crypto
At the time of penning this down, BTC is trading -7.02% at $5883. The US Stock market is also trending down with consistent losses over the last 24 hours.
The declining trend of the US Stock Markets is at its extremely low. Hence, it is impossible for the market to recover before the next trading session tomorrow.
Last week, the crypto space showed signs of recovery. However, to determine a consistent trend in regard to the relation between stock market trend and crypto price, we will have to wait till the next trading session.
Bitcoin’s future amid the Corona outbreak
In a recent press conference, New York state governor Andrew Cuomo mentioned the possibility of the global lockdown persisting throughout 2020. He basically hinted that if the crypto market is adversely affected, then it might take more than a year to recover.
However, the recovery and steadiness of the crypto space completely depend on its capability to decouple from the lowering stock market trends and offering more utility as a digital currency.
On the other hand, Binance CEO Changpeng Zhao is pretty optimistic about the future of crypto. In a recently published blog post, he wrote, “I am not worried about crypto at all. The fundamentals did not change. Unlike fiat, bitcoin remains a currency with limited supply. No one can print more of it. Demand is increasing, especially now. It will be fine.”