Markets around the world are at the forefront after Wall Street amassed its worst day in more than a month on Monday, as the Covid-19 coronavirus pandemic could go back once and push back the global economy.
The Dow Jones fell by 2. 3%, its biggest drop in a day since early September, as time goes on in the impending US presidential election. U. S. , negotiations on a stimulus agreement continue and coronavirus cases emerging in the United States and across Europe.
However, as investors withdrew from the stock markets, bitcoin, the virtual currency, continued its recent uptick, adding more than 1% and ranking at more than $13,000 according to bitcoin, an increase of approximately 25% in the more than 30 days.
Meanwhile, Berenberg Bank warned that the European economy could go back in the current quarter if stricter measures were imposed to combat the pandemic and said the scenario had worsened significantly since late August, with short-term dangers “increasingly geared down. “the next few weeks.
“In reaction to renewed restrictions and growing nervousness, prospective surveys and some concomitant signs of economic activity began to decline, ending the uptick that began in May,” bank analysts wrote in a report.
Amid all the sadness and sadness, bitcoin has continued to rise, and some on the bitcoin and cryptocurrency network are convinced that the coronavirus crisis will boost virtual assets.
“Bitcoin is now in a better position to continue its growth, having almost reached the peaks of the last 3 years,” said Alex Kuptsikevich, FxPro’s senior monetary analyst, in an email, who believes the 2020 Bitcoin rally is backed by an earlier one. This year, known as a halving, the number of bitcoins rewarded to those to whom the bitcoin network, called minors, has halved: from 12. 5 bitcoins to 6. 25.
“It is widely accepted that the bullish cycle is in the third half reduction, which took place in May. The result is a tension in the source of bitcoins at a time when buyers around the world are losing confidence in domestic currencies, the price of which is eroding. through a printing press that operates at full capacity. “
The value of bitcoin, after collapsing with the peak of other markets in March, has been a miraculous recovery in recent months, emerging with inventory markets and mounting an unprecedented wave of global stimulus and financial impressions.
“Actions have plummeted. Bitcoin is flat,” said Cameron Winklevoss, a well-known Facebook founder who has since founded Bitcoin and the New York-based Gemini cryptocurrency with his brother Tyler, Twitter. “The decoupling is upon us. “
As stocks faltered, bitcoin peaked since the beginning of last week, driven by a series of advances and growing confidence among some investors that bitcoin will act as a hedge against an increase in inflation they see on the horizon.
“Overall, the pandemic is obviously a positive thing for bitcoin,” said Gregory Klumov, founder of the euro-backed stable currency issuer Stasis, which adds to the limited source of 21 million bitcoin chips that are “favorable” compared to recent ones. financial stimulus measures.
However, there are considerations that the value of bitcoin will possibly still remain at speed with falling stocks.
“The dangers to bitcoin still exist,” Kuptsikevich added. ” The main one is the possible deleveraging in the money markets. If the drop in inventory indices becomes a collapse, bitcoin can also simply repeat its March drop, when its value was reduced to more than half. Suppose that this incredibly adverse situation can also be avoided, thanks to a government stimulus package or Federal Reserve measures, bitcoin may not find significant resistance to maximums over $20,000 and may also be able to succeed prospectively in the months to come. “
I am a journalist with significant experience in the fields of technology, finance, economics and business around the world. As founding editor of Verdict. co. uk, I pointed out that