Bitcoin prices rise amid the increase of coronavirus pandemic cases globally. A come back from the loss of the cryptocurrency market earlier this month. Earlier this month bitcoin experienced a decrease on its price due to investors who sold off their stock because they saw bitcoin as a risk asset rather than a digital gold in the global outbreak of coronavirus pandemic.
Bitcoin price rises after U.S. Federal Reserve assured support
Despite the rising cases of the coronavirus pandemic, bitcoin prices increased along with other digital coins, ethereum, and XRP. The increase in price came after the U.S. Federal Reserve guaranteed its support to the cryptocurrency market to shore the economy. The increased interest to cryptocurrency market also contributed to this rise. “This has given a lot of confidence to investors,” Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC via email. Asia has a high contribution to the increase of the cryptocurrency market, filling the decrease of the market in Europe and the U.S. after the announcement made by the Federal Reserve. Along with the words that gave the investors confidence, the Federal Reserve also said that they would make the people for keeping their money themselves during this time. On March 24, the 24 hours increase of cryptocurrency market capitalization exceeded over $14 billion to reach $182.62 billion at 11:47 a.m. Singaporean time according to data from Coinmarketcap.com. Federal Reserve gave confidence to many investors of the cryptocurrency market. Still, only time decides if it is capable in the long run due to the global economic decline because of coronavirus pandemic.
China launches CBDC amid challenges of coronavirus pandemic
China is the epicenter of this coronavirus pandemic, is planning to launch China CBDC this year. China’s action is considered a significant milestone in the history of central bank digital currencies, the cryptocurrency market, and the global economy. China has prepared for this since 2014. People’s Bank of China (PBoC) is moving towards the issuing of its national digital currency. China has the basics done before the announcement of the launching of China CBDC. The exact date of the launch of CBDC is still in progress, but analysts expect it this year since the coronavirus pandemic is not a hindrance to its launching. A study from Germany found that coronavirus can survive on the banknotes, coins, and exteriors of ATMs for many days has given a push to CBDC to launch sooner.
With the coronavirus pandemic increasing globally, the cryptocurrency market sees an increase as well. Many investors have invested more in the cryptocurrency market than the physical banks due to the pandemic. As the cryptocurrency market is getting popular, many have joined the market due to the increased interest of potential investors. The cryptocurrency market is also becoming popular as it is a contributor to the global economy. Potential investors saw it wiser to invest their assets in the cryptocurrency market. With the growth of the countries in the world, the cryptocurrency market will continue to grow in the future.