How Will the current pandemic affect the crypto market?

[akjuve]

As I've seen so far, Altcoins doesn't looks like they are being affected by this pandemic going on..

In February, when the virus began to spread out of china, BTC was 10000+ and within that month and March, the price got approximately divided by two.

Many traders are on loss and some are still under water till date. But what's is the current situation, I see many new developments and improvements in Altcoins so far and If this could continue like this, The current world economy situation or current pandemic isn't gonna affect crypto market negatively.

Also major cryptocurrency exchanges are not being affected by this current pandemic according to users signing up and trading Volumes
source  : https://cointelegraph.com/news/coronavirus-pandemic-is-reshaping-blockchain-companies-roadmaps/
Check the Exchanges paragraph.

So, it's like most lockdowns are making people go into trading and bringing more users to cryptocurrency trading.
Do anyone think the Coronavirus will reshape the cryptocurrency economy or blockchain industry positively?
I will also like to see more explanations if there is.

[d5000]

There could be two effects in place which positive affect the market, currently.

First, there seems to be a run for "uncorrelated assets", meaning assets not correlated with the major stock markets. While I question the premises of this trading movement (it isn't at all guaranteed that assets like Bitcoin won't behave differently, in the long run! I wrote a bit about that in the Spanish Forum) it seems to currently have enough short-term effects to lead to a little bull run.

Second, there may be hopes that COVID-19 could lead to a long-term boom in digital/online payments. If Bitcoiners behave intelligently and they manage at least to keep their share (which is extremely small, still) in the digital payments market, then this should lead also to a significant increase in Bitcoin adoption "as a currency". So it would be strategically important to reforce the efforts for payment solutions, like LN (I hope Electrum 4 with LN support becomes stable soon).

I think the first effect currently is much stronger, and "bulls attract more bulls", so this bullish market move may last some weeks more. The second one could be a longer-term effect, and it could even bring us to another ATH.

[jackg]

There's also a chance that a lot of the money in btc is just different from. What's invested in the stock market. If most of the coin is held up by diversification of portfolios or cypherpunk net worths then we may see little to no correlation (as long as btc doesn't completely tank back to 4k)...

[CaVO32]

There could be two effects in place which positive affect the market, currently.

First, there seems to be a run for "uncorrelated assets", meaning assets not correlated with the major stock markets. While I question the premises of this trading movement (it isn't at all guaranteed that assets like Bitcoin won't behave differently, in the long run! I wrote a bit about that in the Spanish Forum) it seems to currently have enough short-term effects to lead to a little bull run.

Second, there may be hopes that COVID-19 could lead to a long-term boom in digital/online payments. If Bitcoiners behave intelligently and they manage at least to keep their share (which is extremely small, still) in the digital payments market, then this should lead also to a significant increase in Bitcoin adoption "as a currency". So it would be strategically important to reforce the efforts for payment solutions, like LN (I hope Electrum 4 with LN support becomes stable soon).

I think the first effect currently is much stronger, and "bulls attract more bulls", so this bullish market move may last some weeks more. The second one could be a longer-term effect, and it could even bring us to another ATH.

I like the possibly long term effect in terms of digital/online payments. Since fiat or paper money is identified as one of the means that may transfer the virus from one person to another, it is better to lessen our contact with our paper money. And in this regard, one option is to have more digital payments and that where crypto is coming in. However, we need shops or merchants to join this movement. If a lot of these shops around us will start to accept crypto, it may drive for other noncrypto users to learn how to use crypto because it is already available. If it is not available, then I don't think people will look for it.

[boyptc]

March was so far the worse month for this year, IMO. We might see another worse month for the remaining months but I'm not looking forward to it.

So, it's like most lockdowns are making people go into trading and bringing more users to cryptocurrency trading.
Do anyone think the Coronavirus will reshape the cryptocurrency economy or blockchain industry positively?
I will also like to see more explanations if there is.

It is.

But think of it that it's not crypto which is only reshaping but the other markets too like stocks, oil, etc. So far so good, we've recovered pretty much and there's more for it to show.

[fiulpro]

Since the economic conditions are not getting better any soon , the current pandemic is causing a huge loss in the investments , people have to encash money from wherever they can afford to take care of their daily needs .
Crypto market is no different , the current situation is Making it very difficult to attain a good price but at the same time it is supporting some users to do overseas transactions + now people can offer their services to the buyers living not just in their own country but anywhere in the world.
So I would say due to cryptocurrencies , the Crypto market is Down but popularity have increased.
We might be seeing some problems in the bear future but in the long run it is going to be good for the users , since we are able to attain a good audience.

[davis196]

It seems that all online activities,including cryptocurrency trading aren't damaged by the global crisis.The market shock that happened back in March is in the past and I don't expect another shocking 50% price crash soon.
The cryptocurrency markets looks stable so far,but there's a huge level of uncertainty.Nobody knows what will happen in the next few weeks and nobody can plan in the long term.
The crypto traders,who suffered a loss in the last two months will have to wait for a few years,in order for them to recover their capital completely. 

[Beparanf]

It is affected in the early announcements of different country lockdown, but now it seems improving the price didn't lose a lot. This pandemic not literally affect the market too much unlike in the drop of stock market prices but the users who are into holding crypto that might have no option but to cashout some of what they hold. Many were taking advantage now to buy investment not just in crypto but even in stocks.

[verita1]

The crypto market works 24/7 and 365 days a year, and it is also a market that does not have to leave home to work, it is digital money.
Despite the current crisis, the prices of cryptocurrencies have not failed, the Community has responded positively in these difficult times allowing the growth of the ecosystem to continue.

It may not be at the planned rate, but startups and current projects have not stopped.
The sector that will grow is that of finance because it has shown that it needs to be updated according to current technological advances. We will also see more projects focused on health and charity.

[michellee]

Although it will affect the crypto market, I hope the effect will not be too big. The pandemic makes people scare and afraid to go out, and I think they already cash out their money because they need money to buy their daily needs. But sooner or later, everything will be back to normal again, and even the crypto market gets the effect, it will not make traders to panic sell their coins because they believe that it will over someday.

[Sadlife]

You're wrong, in the initial stages of the crisis Bitcoin has also been affected with the market plunge in the stocks and this had happened in the month of April where we had a flash crash bringing down the price to $3000 level showing cryptocurrency and stock market correlation. But in time with the collapse of the traditional market due to quantitative easing and rate cuts, it will slowly kill the financial institution. Affecting the cryptocurrency market and possibly triggering a surge.

[Lomberjack]

Although it will affect the crypto market, I hope the effect will not be too big. The pandemic makes people scare and afraid to go out, and I think they already cash out their money because they need money to buy their daily needs. But sooner or later, everything will be back to normal again, and even the crypto market gets the effect, it will not make traders to panic sell their coins because they believe that it will over someday.

We should really hope for an early recovery for these pandemic especially, for a cure because, day by day, the number of people that are affected by the pandemic is still increasing especially on countries that do not have that enough medical facilities and advance technology to avoid and lessen the spread of the virus. A cure is what we really should hope for because, there is less assurance that we would stop the virus just by quarantining, for me, it is only supposed to lessen but, cannot fully stop the virus. As this virus continues to spread across borders, we might expect another dump because, possible holders of Bitcoin might soon cash out as they are running out of money for their necessities due to lack of financial income especially those that are less privileged.

[shoreno]

You're wrong, in the initial stages of the crisis Bitcoin has also been affected with the market plunge

he wasnt talking on btc but he only said that altcoins arent seem to be affected  . he was right because as i can see eth and other alts are still doing fine  .

Although it will affect the crypto market, I hope the effect will not be too big.

yes it isnt huge because like i said earlier , only btc are the ones that being affected the most  but btc is fine now so no worries  .

The pandemic makes people scare and afraid to go out, and I think they already cash out their money because they need money to buy their daily needs. But sooner or later, everything will be back to normal again, and even the crypto market gets the effect, it will not make traders to panic sell their coins because they believe that it will over someday.

you said it makes them scare but you said it will not make them panic  ? for some maybe  but some are still calm and are willing to handle the situation because they think that its only a kind of test plus they also think positively

[Febo]

As I've seen so far, Altcoins doesn't looks like they are being affected by this pandemic going on..
In February, when the virus began to spread out of china, BTC was 10000+ and within that month and March, the price got approximately divided by two.

Value of everything dropped. But latter on started growing. Stocks. Gold. Bitcoin. Altcoins. The more volatile asset like Altcoins dropped most. Least volatile asset like Gold dropped least.

[Findingnemo]

Pandemic helped the people to realize why they need to hold an asset which is under control of no one and that is the reason why some investors moved towards bitcoin but it is not an adoption, to be honest, when the economic situation returns back to normal they will jump into stocks again. Still, we have halving upcoming which is the major speculative thing we got to set the prices up to be bullish.

[hugeblack]

All predictions depend on the behavior of the "combined" countries with this pandemic. After all, the current financial system is based on trust. Trusts that governments and central banks give paper value. If trust shakes during a pandemic, we may see a tendency to experiment with more new economies and thus prosperity.

In short, the persistence of the crisis means better chances of new Bitcoin ATH, while quick, ideal solutions by governments mean fewer chances of it.

[Jating]

All predictions depend on the behavior of the "combined" countries with this pandemic. After all, the current financial system is based on trust. Trusts that governments and central banks give paper value. If trust shakes during a pandemic, we may see a tendency to experiment with more new economies and thus prosperity.

Obviously, this is a pandemic, everyone is really affected, from first world to third world countries.
Government printing money is one way they deal with this crisis, but I doubt that this will be the solution.

In short, the persistence of the crisis means better chances of new Bitcoin ATH, while quick, ideal solutions by governments mean fewer chances of it.

That is, if people really thinks that crypto is a safe-haven. Crude oil is done for now, Stocks is on a swing, crypto? making good run, so I do hope that the narrative will hold during this covid-19 pandemic.

[Bobby park]

When this pandemic started spreading around many people was being affected, especially in the market remember Bitcoin is at its top which is $10,000 dropped to $4,000 because almost all crypto currency was been affected. But during lockdown people realize that Bitcoin price raising gradually, it is because of people don't know where they should get money since all works are being suspended. That is traders and investors take advantage this situation to invest in Bitcoin because some speculations that cryptocurrency will become a good bit assets for better future.

[sheenshane]

There are a lot of covid19 topics here but this thread catches my attention.

For me, the coronavirus pandemic has a huge impact on the economy a big downfall to the global economy since it started back in china. During the month where the crypto price fell down into half that was because people are still on the state of panic that they need to encash all their savings to buy their necessities since that the demand was low it come to that point if halving the value but now since people are looking for a safe haven of their assets and they can see the crypto market has it then, they started to invest in crypto and that's how the price was able to bounce back to its normal value because the demand went back like before.

This is how the pandemic can affect the crypto market. The effect might be little enough to be seen but with a thorough study, you will learn that the crypto market is still part of the economy and may be subject to changes. After all, I'm happy with the result of the market price, it showed little improvement and all went green this week.

[The Sceptical Chymist]

As I've seen so far, Altcoins doesn't looks like they are being affected by this pandemic going on..

They seem to have gotten hit as bad or worse than bitcoin itself has--and the slaughter could have been much worse, but altcoins are seriously down for the year if I'm not mistaken, and I'm not sure when they're going to start to recover.  And yeah, all of that was due to the viral outbreak.

This situation can't continue on forever, as that doesn't match the pattern of previous outbreaks.  So whenever this ends, it'll be a good thing for bitcoin--and I'm happy it's maintaining a price above $7k right now.  I figured bitcoin would have gotten hit hard and remained below $5k or so.  Anything above that is music to my ears.