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The Covid 19 Pandemic decimated the world in early 2020 and proceeded to make its presence felt throughout the year in various parts of the world, resulting in a massive economic impact. Because of its volatility, many people expected that the crypto market would crash. Because of the performance of numerous well-known stocks throughout the epidemic, the majority of the projections were exaggerated. Contrary to popular belief, the crypto market, particularly Bitcoin, has outperformed the traditional stock market. It’s worth noting that Bitcoin remained below $10,000 for the majority of 2020. It increased by 90% to $19,000 from October to November 2020, suggesting a substantial rise of 90%.
According to the Year-to-Date Analysis, Bitcoin has appreciated by 158 percent since the end of December. When compared to Ether, which surged by 346 percent, it appears to be less spectacular. Many people overlook the fact that Bitcoin has a market valuation of $300 billion, making it the largest cryptocurrency available on exchanges like Coinbase (Bitcoin Era). We may assess the actual performance by comparing it to Ether, which has a market cap of $60 billion. As a result, our main question is: what led Bitcoin to climb by 158 percent between December 2019 and October 2020, until November 2020, in the midst of a stock market bear market? Investors may have had an easier time with Bitcoin as a result of the following factors:
Some well-established stock exchanges were decimated by the pandemic. To avert significant economic blackouts, several major economies began to supply financial aid in the form of major financial resources to market players and numerous economic actors in general. Lending rates eventually declined, and returns were modest. Virus outbreaks and novel varieties, as well as information regarding vaccine availability and manufacturing capability, caused economies to contract. Many countries’ fiscal deficits widened, exacerbating the problem. In this atmosphere, Bitcoin has largely shown to be a relatively low-risk component. It had no effect on any fiscal stimulus, lockdowns or no lockdowns, and it continued on its merry course as before the outbreak. For many investors, Bitcoin was significantly less hazardous than traditional routes during these unparalleled moments of stability.
Because the technology is considerably more advanced than it was in 2009, and more people are using it, Bitcoin was able to survive the epidemic better in 2020. Bitcoin may be used for a variety of purposes, including paying your coffee bills and placing grocery orders. Its previous unfavourable reputation began to fade. Nonetheless, the loss may be readily tapered off, which is not the case with traditional investments.
The storm becomes calmer the longer it lasts. Bitcoin, on the other hand, cannot be compared to that. Bitcoin and other cryptocurrencies have outperformed traditional stocks in the market in general. However, if we look at the current situation, traditional stocks have returned to their old business, whereas Bitcoin has skyrocketed in value. Bitcoin was surging at $55,000 in February, owing to Tesla’s announcement that it will buy 1.5 billion dollars’ worth of cryptocurrency. It has suffered a small stumbling block since then, but it has returned to its April high of $65,000. Following that, the Bitcoin price plummeted, dropping to $30,000 due to China’s tight mining laws. Bitcoin’s price has levelled off and is now trading at $42,000.
During the Pandemic, one learned about Bitcoin’s true power. Many investors began to refer to it as “digital gold.” Many new investors regarded this as a once-in-a-lifetime opportunity to profit handsomely. However, it is important to remember that Bitcoin and the entire cryptocurrency market are still speculative and should be approached with caution before investing. Bitcoin is growing day by day and has established its foot in the industry of the cryptocurrency and is working in a full – fledged manner to gain the popularity among the other cryptocurrency available in the country. It is sold on many websites across the world and the bitcoin stock market and the detailed nuances is one such platform which provides the facility of buying Bitcoins on their website.