Will Stablecoins Strengthen The Crypto Holdings Amid Corona Fear?
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Will Stablecoins Strengthen The Crypto Holdings Amid Corona Fear?

June 27, 2020      Aditya Nagar

In life, some bad phases deteriorate the lifestyle of people and the economy. There is a feeling of joy to welcome the new year to expect positive changes in our lives. The same was expected from the current year, 2020. But it proved to be the most devastating year for many businesses and lives. And it all happened with the emergence of coronavirus from China, which spread all over the world and has badly affected the lifestyle of common people. Many big and small businesses came under its negative influence. So how can you expect a cryptocurrency to remain safe from it? The year 2020 has become a trial time for these digital currencies. Observing the falling of centralized economies, many are finding refuge in cryptocurrencies. There has been an extreme drop in asset value due to rising COVID-19. Now, this spawns a question about whether stablecoins would strengthen the crypto holdings amid corona fear?

All the hopes to buy cryptocurrency in India has sunken. And it is all because dipping of Bitcoin trading to $4K, in one month compared to $10K in mid-February. The main reason behind the falling market begins from China, which is known to be the world’s prominent investment hub for cryptocurrency, comprising maximum crypto exchanges. While analyzing the beginning of coronavirus, we found that its demonic outbreak has resulted in extreme shackling of economic structure to China itself. This has posed a major challenge for crypto markets as well as regular markets.

Fluctuation in the market has been further caused by COVID-19, declared as the uprising pandemic by WHO. The news of arriving coronavirus tumbled down the European and Asian stock markets. Bitcoin along with the whole crypto world too got stuck in the turmoil of coronavirus. But it raises questions about whether this pandemic virus has anything to do with investors? Is there any hope for opportunities for investment or crypto holdings?

Being familiar with the unpredictable nature of major crypto players, it will take time, before expecting any positive results in the market revolving likes of Ethereum and Bitcoin. Accepting this reality, investors are inclined to stablecoin markets, for crypto holdings, as they find solace in it, till the ending signs of the bear market.

Amid fear, the stablecoin market has performed very well with the degree of solidity. Some of the well-known stablecoins like Paxos, Timvi, and Tether have shown positive results in terms of prices and strong trading volume in current times. It is surprising to see stablecoins crossing over the total market cap amid the dreadful persisting conditions of coronavirus. The rising interest in stablecoins indicates their potential to strengthen crypto holdings amid coronavirus outbreak.

The stability factor of stablecoins is also the main reason behind the rise of confidence among investors for digital assets. Now even traders are also eyeing their focus on stablecoins for crypto holding and useful payment methods away from perturbed fiat currencies. If you are an investor wanting to invest in times of persisting uncertainty, then the stablecoins market proves to be the safest option for your crypto holdings. This will benefit you in being linked to crypto markets and will ensure security with pegged currencies. And when there is a ray of hope indicating the end of the bear market, then there are a plethora of available chances for the recovery of share prices.

Conclusion

Stablecoin market is the best and safest platform for crypto holdings. It is surprising to observe the growing liking for them among the investors and traders amid this crucial coronavirus period. Stablecoins like Tether, Timvy, and Paxos have shown positive results in terms of strong trading volume in recent days. The increased preference for stablecoins proves their worth for holding cryptocurrencies, with no fear from coronavirus. It is hard to expect the end of the bear market period and persisting dreadful virus, COVID-19. If you are inquisitive to know about the latest happening in the crypto world, then better stay abreast of crypto news.

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Aditya Nagar
Aditya Nagar

Aditya is enthusiastic about reading all about the Cryptocurrency and loves to get updated about the recent developments that take place in crypto industry.