(March 18, 2020 Bratislava) We are at the breakthrough of the financial and economic crisis, and right now we will see what the consequences will be on the cryptocurrency market.
What awaits us will be one of the most difficult tests for the entire financial sector and all the economies of the world.
Why the hardest?
- The crises we have had in 2007, 2009, 2011 and 2013 were purely financial in nature. But what we are facing today affects all spheres of life, demand will decrease in every sector, people will put off their purchases and be in quarantine.
- All smaller establishments such as restaurants, bars, fitness centers will be closed but flat-rate rental expenses will run. The largest factories stop production, Volkswagen, Bmw and many others.
- The S&P 500 and Dow Jones Industrial average have experienced the biggest daily declines since 1987. Very important volatility index, reached 84.83, which is close to 2008 when we reached 89.53 during the global financial crisis.
- Simple formula of demand versus supply.
If the virus fails to stop as soon as possible, a wave of bankruptcy awaits us, the loans will stop repaying and the banks will be in trouble.
All these factors mean only one thing, we are facing the greatest economic threat of today.
Will BTC and Cryptocurrencies survive?
You must have heard rumors that BTC was created during the economic crisis and precisely in order to become an independent financial digital asset that will not succumb to the effects of the economic crisis.
Cryptocurrencies are the only ones that will cannot be rescued from a central bank or government, the only thing that will save and sustain them is increased demand and price stability even in difficult times.
What scenarios are in the game and can we expect?
- Cryptocurrencies will no longer lose, and survive with their head up.
- Cryptocurrencies will drop deeper, independent status will be erased forever.
So far, we are witnessing us towards scenario two, the BTC lost nearly 40% in March and traded at $ 9174 earlier this month, today we are at $ 5,300. More in the article: BTC price today Falls rapidly, in March losing 40%
Why did BTC not maintain its value and what could be the factors of such sales?
- The cryptocurrency market is young and has always been highly volatile.
- For the BTC and the entire cryptocurrency market, this is the first time when faced such a serious opponent, and that is the economic crisis..
- A high percentage of investors are inexperienced and subject to panic reactions in the form of sales.