Twollow
  • Tech
    Breathe New Life into Your MacBook

    Breathe New Life into Your MacBook Pro With Battery Replacement

    Machine and Equipment Manufacturers

    Machine and Equipment Manufacturers for Industrial Development

    Roll Out in Style With Kia Cerato Mats

    Roll Out in Style With Kia Cerato Mats

    Beat the Heat

    Beat the Heat Through an Expert Evaporative Cooling System Service

    How To Remove OBJ In A Box In WordPress

    How To Remove OBJ In A Box In WordPress

    How To Delete Ultrasurf For Chrome

    How To Delete Ultrasurf For Chrome

    Streaming Microphone

    Elevate Your Online Presence with a Streaming Microphone

    Luxury modern house on earth isolated on white background,Concep

    How To Use Technology To Design Your Dream Home

    Data-Only SIM Card for Digital Nomads

    The Advantages of a Data-Only SIM Card for Digital Nomads

  • Apps
    Why Should You Buy Views for Instagram

    Why Should You Buy Views for Instagram | Top Advantages

    News Mobile App

    Best Practices For Creating Engaging News Mobile App

    app development

    InsiderTech No:1 Web Application Development

    Efficient Hosting Solutions

    Why Businesses Should Use Highly Efficient Hosting Solutions for Their Sites

    How To Build Android Apps With Node JS Using Android JS

    How To Build Android Apps With Node JS Using Android JS

    Is Powerapps Service The Future Of App Development?

    How To Make Night In Little Alchemy

    How To Make Night In Little Alchemy?

    How To Make Light In Little Alchemy

    How To Make Light In Little Alchemy?

    How To Make Glass In Little Alchemy

    How To Make Glass In Little Alchemy?

  • How To
    How To Import GTA Vice City Save To IOS

    How To Import GTA Vice City Save To IOS

    unit trusts

    How to Invest in Singapore Unit Trusts

    How To Unlock All Gun Skins in free Fire With Lulubox

    How To Unlock All Gun Skins in free Fire With Lulubox

    solar panels

    Common Solar Panel Concerns and How to Deal With Them

    imei number

    How to Check IMEI Number?

    bong

    How do you manufacture a bong?

    Central heating

    DIY Guide: How To Install A Designer Radiator

    website

    Things That Might Be Wrong With Your Website And How To Fix Them

    design a business logo

    How to Design a Successful Business Logo

  • Business
    • All
    • Finance
    Improve Employee Experience

    Everything You Need to Know about Professional Employee Outsourcing in the UK

    Importance of Mental Health Training for Businesses

    The Importance of Mental Health Training for Businesses

    Risk for Your Business

    Tips for Mitigating Risk for Your Business

    Businesswoman Looking At Financial Report

    How to Ensure Financial Health of a Company

    Avoid Capital Gains

    The Importance of the Initial Public Offering Process

    Co-Working Spaces

    Co-Working Spaces is an Alternative to Traditional Renting

    Economic Fallout of Insider Trading

    The Economic Fallout of Insider Trading

    What is Employer Shared Responsibility

    What is Employer Shared Responsibility?

    How To Increase Business Productivity

    How To Increase Business Productivity

  • Marketing
    SMM panels to enhance your social media strategy

    Best practices for using SMM panels to enhance your social media strategy

    Reasons Why SMM Panels Are Essential for Your Online Success

    15 Compelling Reasons Why SMM Panels Are Essential for Your Online Success

    Bangkok SEO Services

    Tap Into the Power of Bangkok SEO Services

    Everything You Need to Know About Legal Marketing

    Everything You Need to Know About Legal Marketing

    SEO Is a Game-Changer

    Why SEO Is a Game-Changer for Your Start-Up

    How You Can Improve Your Customer Experience Using Insights

    How You Can Improve Your Customer Experience Using Insights

    brand

    How to Market Yourself as a Consultant

    Why Is It Investible For Entrepreneurs in Marketplace Solutions

    Why Is It Investible For Entrepreneurs in Marketplace Solutions?

    Customer Retention

    6 Creative Ways To Use Consumer Insights For Customer Retention

  • General
    best coffee bean grinders

    Coffee Packaging Guide for Summer 2023

    plumbing contract

    6 Questions To Ask A Plumbing Contractor Before Hiring One

    Cannabis

    Cannabis Is Now Legal In Thailand, But It’s Complicated

    Youtube

    Top 6 Signs to Start a Private Podcast for your Company

    Car Accident

    Getting The Most Money Out of A Car Accident -Your Legal Guide!

    Edibon Automotive Mechanical Teachings

    Enhance Engineering Skills with Edibon Automotive Mechanical Teachings

    Tooth Implant

    A Tooth Implant in Singapore is a Smile Makeover Without Breaking the Bank

    Estate Agent Course

    The Real Estate Agent Course Helps You Stand Out in a Competitive Market

    Best Bridal Bouquets in Singapore

    Discover the Best Bridal Bouquets in Singapore

  • Reviews
    Development of Cryptocurrency

    A Crypto.com Overview

    Ophthalmology eyesight examination

    Red Light Therapy Devices for Eyes: Where to Buy

    text to speech

    Best Text to Speech Converters Reviewed

    air purifier

    Where Can You Find the Best Air Cleaner Pro Reviews?

    How to Choose a Cheap Hosting

    Liquid Web Reviews: A Look At A Reliable Hosting Company

    Ionic Training

    Get Ionic Training and Improve Your Career Options

    Learning Experience

    Salesforce DX myTrailhead to Customize the Learning Experience

    Best Web Hosting Services

    10 Best Web Hosting Services 2018

    Honey Chrome Extension Review

    Honey Chrome Extension Review – Is It Scam Or Real?

  • Featured
No Result
View All Result
  • Tech
    Breathe New Life into Your MacBook

    Breathe New Life into Your MacBook Pro With Battery Replacement

    Machine and Equipment Manufacturers

    Machine and Equipment Manufacturers for Industrial Development

    Roll Out in Style With Kia Cerato Mats

    Roll Out in Style With Kia Cerato Mats

    Beat the Heat

    Beat the Heat Through an Expert Evaporative Cooling System Service

    How To Remove OBJ In A Box In WordPress

    How To Remove OBJ In A Box In WordPress

    How To Delete Ultrasurf For Chrome

    How To Delete Ultrasurf For Chrome

    Streaming Microphone

    Elevate Your Online Presence with a Streaming Microphone

    Luxury modern house on earth isolated on white background,Concep

    How To Use Technology To Design Your Dream Home

    Data-Only SIM Card for Digital Nomads

    The Advantages of a Data-Only SIM Card for Digital Nomads

  • Apps
    Why Should You Buy Views for Instagram

    Why Should You Buy Views for Instagram | Top Advantages

    News Mobile App

    Best Practices For Creating Engaging News Mobile App

    app development

    InsiderTech No:1 Web Application Development

    Efficient Hosting Solutions

    Why Businesses Should Use Highly Efficient Hosting Solutions for Their Sites

    How To Build Android Apps With Node JS Using Android JS

    How To Build Android Apps With Node JS Using Android JS

    Is Powerapps Service The Future Of App Development?

    How To Make Night In Little Alchemy

    How To Make Night In Little Alchemy?

    How To Make Light In Little Alchemy

    How To Make Light In Little Alchemy?

    How To Make Glass In Little Alchemy

    How To Make Glass In Little Alchemy?

  • How To
    How To Import GTA Vice City Save To IOS

    How To Import GTA Vice City Save To IOS

    unit trusts

    How to Invest in Singapore Unit Trusts

    How To Unlock All Gun Skins in free Fire With Lulubox

    How To Unlock All Gun Skins in free Fire With Lulubox

    solar panels

    Common Solar Panel Concerns and How to Deal With Them

    imei number

    How to Check IMEI Number?

    bong

    How do you manufacture a bong?

    Central heating

    DIY Guide: How To Install A Designer Radiator

    website

    Things That Might Be Wrong With Your Website And How To Fix Them

    design a business logo

    How to Design a Successful Business Logo

  • Business
    • All
    • Finance
    Improve Employee Experience

    Everything You Need to Know about Professional Employee Outsourcing in the UK

    Importance of Mental Health Training for Businesses

    The Importance of Mental Health Training for Businesses

    Risk for Your Business

    Tips for Mitigating Risk for Your Business

    Businesswoman Looking At Financial Report

    How to Ensure Financial Health of a Company

    Avoid Capital Gains

    The Importance of the Initial Public Offering Process

    Co-Working Spaces

    Co-Working Spaces is an Alternative to Traditional Renting

    Economic Fallout of Insider Trading

    The Economic Fallout of Insider Trading

    What is Employer Shared Responsibility

    What is Employer Shared Responsibility?

    How To Increase Business Productivity

    How To Increase Business Productivity

  • Marketing
    SMM panels to enhance your social media strategy

    Best practices for using SMM panels to enhance your social media strategy

    Reasons Why SMM Panels Are Essential for Your Online Success

    15 Compelling Reasons Why SMM Panels Are Essential for Your Online Success

    Bangkok SEO Services

    Tap Into the Power of Bangkok SEO Services

    Everything You Need to Know About Legal Marketing

    Everything You Need to Know About Legal Marketing

    SEO Is a Game-Changer

    Why SEO Is a Game-Changer for Your Start-Up

    How You Can Improve Your Customer Experience Using Insights

    How You Can Improve Your Customer Experience Using Insights

    brand

    How to Market Yourself as a Consultant

    Why Is It Investible For Entrepreneurs in Marketplace Solutions

    Why Is It Investible For Entrepreneurs in Marketplace Solutions?

    Customer Retention

    6 Creative Ways To Use Consumer Insights For Customer Retention

  • General
    best coffee bean grinders

    Coffee Packaging Guide for Summer 2023

    plumbing contract

    6 Questions To Ask A Plumbing Contractor Before Hiring One

    Cannabis

    Cannabis Is Now Legal In Thailand, But It’s Complicated

    Youtube

    Top 6 Signs to Start a Private Podcast for your Company

    Car Accident

    Getting The Most Money Out of A Car Accident -Your Legal Guide!

    Edibon Automotive Mechanical Teachings

    Enhance Engineering Skills with Edibon Automotive Mechanical Teachings

    Tooth Implant

    A Tooth Implant in Singapore is a Smile Makeover Without Breaking the Bank

    Estate Agent Course

    The Real Estate Agent Course Helps You Stand Out in a Competitive Market

    Best Bridal Bouquets in Singapore

    Discover the Best Bridal Bouquets in Singapore

  • Reviews
    Development of Cryptocurrency

    A Crypto.com Overview

    Ophthalmology eyesight examination

    Red Light Therapy Devices for Eyes: Where to Buy

    text to speech

    Best Text to Speech Converters Reviewed

    air purifier

    Where Can You Find the Best Air Cleaner Pro Reviews?

    How to Choose a Cheap Hosting

    Liquid Web Reviews: A Look At A Reliable Hosting Company

    Ionic Training

    Get Ionic Training and Improve Your Career Options

    Learning Experience

    Salesforce DX myTrailhead to Customize the Learning Experience

    Best Web Hosting Services

    10 Best Web Hosting Services 2018

    Honey Chrome Extension Review

    Honey Chrome Extension Review – Is It Scam Or Real?

  • Featured
No Result
View All Result
Twollow
No Result
View All Result

The dynamics of Bitcoin market during COVID-19 crisis

by Tom Fogden
September 6, 2021
0
bitcoin
Share on FacebookShare on Twitter

The pandemic of 2020, COVID-19, has led to many changes in the world. When everything was stopped with a lockdown, people got stuck at home. Various activities they used to do before faded away, making room for the other ones. Those who didn’t lose their jobs began working remotely. We were forced to organize meetings online, instead of having live communication. Most of us started playing video games and came back to old hobbies we couldn’t find time to take before.

However, changes touched not only our personal lives but also the financial sphere. When a plethora of people around the world couldn’t work, they should have searched for a new way of making money to survive. Thus, the cryptocurrency market appeared as one of the most popular methods to get some income.

New highs in Bitcoin are making headlines every month, driving the price of other assets. So why has the price increased so dramatically in the middle of a pandemic? Let’s take a look at how COVID-19 affected the overall crypto market.

How did the Bitcoin price change due to the COVID-19?

Perhaps, no one could imagine that virtual currency known only in some countries among particular groups of people will gain popularity and spread all over the world. As a matter of fact, Bitcoin’s price climbed from $7000 in March 2020 to over $63,000 in April. It seems that this market has flourished since the pandemic started.

When the COVID-19 broke out, Bitcoin, the world’s first and leading cryptocurrency at CEX.IO, was available for $7,300. Comparatively, as of today, the same coin costs more than $46,800 – a drastic 640 percent increase. There have been similar (or even greater) increases in other leading cryptocurrencies (e.g., Ether). A theoretical standpoint, however, might not suggest an upward trend as several forces can drive demand up or down during a crisis.

What were the reasons for the BTC price growth?

Obviously, there were many reasons for Bitcoin to grow in price during the lockdown period.

Inflation

Amid the pandemic caused by COVID-19, the government had to step in with stimulus packages. Moreover, central banks print more money, thereby increasing inflation and reducing people’s purchasing power. As Forbes reports, the U.S. Federal Reserve “tolerates” inflation above its 2% target level, signaling a willingness to tolerate higher prices.

In light of the inflation threat, Bitcoin is, therefore, becoming more and more of a preferred store of value. As digital currencies got more prevalent, central banks will also use them. Namely, the governments of China and Russia have plans to implement central bank digital currencies (CBDCs).

Everything goes digital

As a result of COVID-19, several countries instituted lockdowns and curfews. Despite the negative effects of this move, it has led to a shift to the digital world. Remote work that was not so common before saw an extension during the pandemic, accelerating the usage of technologies.

In keeping with the growing ubiquity of digital technology, remote financial services have also grown in popularity. As a result, Bitcoin adoption has increased. Buying and selling Bitcoins is simple once you have a steady internet connection, which makes it an ideal option for international transactions.

Investor’s shelter

In the past, safe-haven assets like gold have been dominant. When the market performs poorly, the asset has the ability to hold its value, which means that it performs well in volatile markets. No matter how the market fluctuates, the asset value remains stable. Initial price drops were due to a pandemic, but they have since rallied to record highs. With the Coronavirus pandemic, Bitcoin has emerged as one of the safest investments for investors.

In the event of a crisis, investors who fear that the market will be affected by central banks or political actors may switch their investments to the decentralized crypto market. Consequently, since cryptocurrencies aren’t centralized but rather operate automatically, they can serve as a hedge against political risk, making them more attractive to investors.

The existing protocol limits the number of Bitcoins to 21 million. The current supply of Bitcoins is around 18.5 million. Additionally, Bitcoin’s block verification reward halves every four years. The reward is now 6.25 Bitcoins instead of 12.5 in previous years. A decrease in the reward results in a decrease in the supply of new coins. This creates a scarcity that is greater than precious metals.

Banks and cryptocurrency

In the wake of the Coronavirus, banks were closed. Traditional banks have been declining in popularity, so many people have turned to alternative financial institutions. For those who wish to move away from decentralized banking systems and for those underserved by banks, Bitcoin has proven to be a great option. For example, Bitcoin transactions do not require a bank account.

Bitcoin improvement

Companies dealing with Bitcoins have upgraded their operations technology due to increasing demand. A seamless and fast transaction system has been implemented. However, the mining methods for Bitcoins have been a primary concern. They were found to be associated with carbon emissions. There is, however, a movement toward green technologies like hydroelectricity and solar power.

Newbies in the trading world

It wasn’t only new HODLers who flooded the market but also new traders. People were forced to stay in the comfort of their homes or work from their sofas due to the pandemic. As commute times decreased and there were fewer activities to do in their free time, many people started spending more time online. Obviously, most of these people were looking for some sort of financial benefit. Hence online trading was an obvious choice. Although there were numerous people who were actually pioneers at the start of the pandemic, they were easily able to get started thanks to resources online, like educational academies for brokers, Udemy courses, and subreddits like Wall Street Bets.

Conclusion

It is evident that Bitcoin appreciation was accompanied by the COVID-19 pandemic. Despite the coronavirus pandemic, Bitcoin has not bowed to its effects, while other sectors have been badly affected. There is no sign that its growth will slow down any time soon. Even though investors are still concerned about volatility, traders are extremely optimistic. The price of the stock could reach $318,000 by December 2021, according to Citigroup.

Tom Fogden

Tom Fogden

Tom Fogden is a writer for Twollow with a range of experience in the world of tech publishing. Tom covers everything from cybersecurity, to social media and website builders when he's not reviewing the latest phones, gadgets, or occasionally even technology books.

Related Posts

Breathe New Life into Your MacBook
Tech

Breathe New Life into Your MacBook Pro With Battery Replacement

When it comes to maintaining a MacBook Pro, one of the most important pieces of maintenance is ensuring that you...

by John Morris
March 22, 2023
Machine and Equipment Manufacturers
Tech

Machine and Equipment Manufacturers for Industrial Development

Welcome to the world of industrial machinery and equipment suppliers. We are a leading supplier of specialized machinery, parts, and...

by John Morris
March 20, 2023
Roll Out in Style With Kia Cerato Mats
Tech

Roll Out in Style With Kia Cerato Mats

The Kia Cerato is a popular mid-size sedan that is known for its affordability and dependability. One of the most...

by John Morris
March 20, 2023
Beat the Heat
Tech

Beat the Heat Through an Expert Evaporative Cooling System Service

Evaporative cooling system services provide a cost-effective and energy-efficient way to keep your home or business cool during the hot...

by John Morris
March 20, 2023

Recommended

best coffee bean grinders

Coffee Packaging Guide for Summer 2023

March 31, 2023
plumbing contract

6 Questions To Ask A Plumbing Contractor Before Hiring One

March 31, 2023
SMM panels to enhance your social media strategy

Best practices for using SMM panels to enhance your social media strategy

March 31, 2023

Who We Are

Twollow is one of the leading tech and business blogs, that is dedicated towards updated Technology & Business news, reviews, Apps, how-to, smart tricks, and tweaks.

Follow Us

  • Facebook

Categories

  • Apps
  • Business
  • Education
  • Featured
  • Finance
  • General
  • How To
  • Marketing
  • Reviews
  • Security
  • Tech
  • Uncategorized

Top Posts & Pages

  • 100+ Free Premium Minecraft Accounts & Passwords (Tested 2023)
    100+ Free Premium Minecraft Accounts & Passwords (Tested 2023)
  • How Much Weight is Allowed in a 20 ft and 40 ft Container?
    How Much Weight is Allowed in a 20 ft and 40 ft Container?
  • How to Get Free Virtual Phone Number for WhatsApp Installation
    How to Get Free Virtual Phone Number for WhatsApp Installation
  • Hemp vs. Cannabis - what’s the difference?
    Hemp vs. Cannabis - what’s the difference?
best coffee bean grinders

Coffee Packaging Guide for Summer 2023

March 31, 2023
plumbing contract

6 Questions To Ask A Plumbing Contractor Before Hiring One

March 31, 2023
SMM panels to enhance your social media strategy

Best practices for using SMM panels to enhance your social media strategy

March 31, 2023
  • About Us
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • Disclaimer
  • Cookie Privacy Policy

No Result
View All Result
  • Home
  • Security