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Will the second wave of the coronavirus in cryptocurrency

FXcoins - Will the second wave of the coronavirus in cryptocurrency

During the first wave of coronavirus citizens of Russia began to actively invest in digital currency on the stock exchange Binance. In April and may 2020 investors was several times more than in past years. In addition, when companies began to send staff to remote work, the market of portable computers began to show significant growth, which led to some shortages, as manufacturers do not have time to deliver the goods in time.

 

Gleb Kostarev, the main head offices Binance throughout the CIS, suggested that the quarantine is only partially influenced the demand growth of the cryptocurrency market. Special attention should be paid to the fact that all of the world economy has shown significant decline and approaching crisis, and as the markets have high correlation, the price of cryptocurrencies is also decreased, due to which they have become affordable for most users. The second important factor is having bitcoin, which has led to changes in the mining of cryptocurrencies.

 

Kostarev suggests that the second wave of the coronavirus do not cause serious consequences to the economies of other countries, as they will be ready for this blow, so the effects would be negligible. The expert also drew attention to the fact that the first cryptocurrency has a close relationship with stocks, bonds and American technology index the S&P 500.

 

But the founder of the exchange Garantex Sergei Mendeleyev argues that the movement of the price of cryptocurrencies will be correlated with the spread of the pandemic coronavirus. He argues that if the epidemic will affect countries such as USA, China, Germany, Britain, etc, then all the indexes will go down, and then a similar situation will happen with the market of digital money.

 

It was during the epidemic of the coronavirus 2020 increased the relationship between the traditional market and cryptocurrency. The beginning of July showed that bitcoin depends on the S&P 500 index by 90%. A similar situation occurred with the NASDAQ, which has updated its historical maximum, after which rose cryptocurrencies.

 

Summing up it is worth noting that traders are interested in the manipulation of digital money only during high volatility. At the moment the price of bitcoin traded in a range between 9234 USD 10 000 USD. The cost of bitcoin now - 9323 USD. Therefore, investing in cryptocurrency, you need to understand its relationship to other exchange-traded assets, or during the second wave of the coronavirus, there is a risk of losing the invested money.

08 July 2020

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