Coronavirus, the deadly pandemic virus disease has appeared to be a dark phase for all those who have great admiration for cryptocurrencies. Those who were inquisitive to know about how to invest in Bitcoin in 2020, have now become too doubtful. The rising cases of Coronavirus are becoming a big concern for the whole world including India. Cryptocurrency just got a sigh of relief when the apex court of India pulled off the ban that was earlier levied by RBI. But now with the continuous spread of disease, it has prompted the crypto industry to take a backfoot. And it is all because of the Coronavirus adverse impact on cryptocurrencies.
Coronavirus emerged as a global outbreak on 11th March 2020 from China. Ever since its beginning, many big businesses started fluctuating and are still trying hard to cope up. But the more we hope about positive change, the more negative results are coming up. People of India are left with no other option but to lock themselves up in their respective abodes. Not only big markets but local business people have also suffered a great loss in their business, which is the only medium to earn bread and butter to support their family.
Coronavirus's impact on cryptocurrencies must have prompted people to think twice about their decision about how to purchase cryptocurrency in India as well as other countries. However, amid such crucial conditions, there has been a response from the financial markets. Let us delve into to know about how the deadly virus has impacted the digital financial technology.
Now it is nothing new to know about the factor of volatility present in cryptocurrency zone that is infamous for uncertainty and fluctuations. But observing the current situation, it seems that coronavirus is spreading more fluctuations than volatility in cryptocurrency. Because of its impact on the global economy, cryptocurrency has also experienced a fall in the prices in the month of March. Bitcoin, the most popular and well-known crypto coin too could not save itself from biting the dust with a drop in its price, according to market capitalization. The decline crypto markets started when the rising disease got a new name of COVID-19 by World Health Organization.
Bitcoin is not the only example that can be quoted for the impact on cryptocurrencies by Coronavirus, but there are digital currencies like Ethereum, the second most popular name after Bitcoin too suffered a sharp decline in its prices between February and March. Besides Ethereum, XRP, the digital token of the Ripple network is also not far behind in experiencing a drop in the value.
The spooking effect of Coronavirus on global market participants during 2020 has put a question mark on the Bitcoin status as safe-haven. In March, stocks had a tough phase with the heavy losses suffered by the broader market. But analyzing the current situation, Bitcoin faced a heavy sharp decline.
Coronavirus's impact on cryptocurrencies has become a serious concern. Bitcoin along with other fellow cryptocurrencies like Ethereum, XRP is also facing the same persisting situation. The adverse effect of the deadly virus has raised a question mark on the status of Bitcoin as ‘safe-haven’. With more and more rising cases, it is still very difficult to speculate about the end of the deadly Coronavirus. It is because, till now many businesses are still trying to bounce back, but no such positive results are being seen yet. When nothing seems to be right in the current situation, the only choice left is to wait and watch.