As the number of Coronavirus infections continues to rise globally, governments tighten measures to protect people, and markets are hurt. What has led to that, even value reserve assets such as Bitcoin, are affected, being the biggest challenge so far for the cryptocurrency according to BitMEX.
The great challenge of humanity
It is difficult for humanity to unite. Even in the worst moments of humanitarian crisis in several countries of the world, the great powers have not managed to reach agreements that allow solving global problems.
Even in the midst of the crisis generated by the spread of the pandemic, China and the United States, the main economic powers, spend their time accusing each other of the onset of the disease.
However, united or not, the truth is that the Coronavirus is a challenge that affects all of humanity. Well, no matter where we are from, our social position, race, creed or any other condition, the disease affects us all equally. It has the potential to end the lives of hundreds of thousands of people before it can be definitively controlled.
And facing this challenge, governments, companies and responsible citizens are doing everything in their power to support.
Be it with multimillion-dollar incentives, such as those offered by western governments against the Coronavirus. Others putting their production lines at the service of the fight against Covid-19. Or simply staying home.
The great challenge for Bitcoin
For cryptocurrencies the situation is no less alarming. Well, one of the great consequences of the Coronavirus in the entire world, beyond the health crisis, has been the economic crisis. With the collapse of the financial markets for at least four days, bringing the economy of the world’s major powers to its knees.
An effect that has reached the crypto market, with a substantial drop in the price of the main crypto assets. Losing Bitcoin, in a matter of days, all the gains generated during the bullish rally in the first months of the year.
However, one of the world’s leading exchanges, BitMEX, has a more optimistic view of the situation in the crypto market. Writing in its latest market analysis, Bitcoin is facing a great challenge, but also a great opportunity in the midst of the Coronavirus advance:
“In our opinion, in this altered economic regime, where the economy and financial markets are loose, without any significant anchor, not even the target of inflation, this could be the greatest opportunity that Bitcoin has seen, in its short life.”
With this, BitMEX sees in the events of the financial market, an opportunity for Bitcoin to lift its head. Especially given the rise in inflation that is expected due to the expansion of public spending, to counteract the effects of the Coronavirus economic crisis.
It remains to be seen if Bitcoin finally has the capabilities to take advantage of the window that opens. Making this report our Today’s Data here at CryptoTrend.