After taking the fall with most other major economic indices, Bitcoin appears to have regained its balance and has resumed its upward movement. Although it is yet to recover fully from its latest crash, the signs of reaching new highs in 2020 have reappeared.
In the wake of the Covid-19 pandemic, the global economy received a major hit. Global stocks and even oil came tumbling in significant measures. Bitcoin was not exempted, as it dropped from over $10,000 to below $4,000 within a short period of time. This fall attracted criticism from naysayers who suggested that the cryptocurrency did not live up to its billing. Their criticism stemmed from the fact that Bitcoin, based on its characteristics should not have succumbed to the same elements that affected the traditional markets.
Bitcoin Separates Itself From Traditional Markets
As explained in a previous post on Coinstituency, there is nothing surprising about the collapse of Bitcoin. As a matter of fact, the fact that only a universal element could shake up the ecosystem signifies that the cryptocurrency is actually boundless and at the same time truly universal.
As the dust of the Covid-19 pandamonium continues to settle, and the global war against the virus becomes more defined, Bitcoin appears to have isolated itself once more. It has risen out of the ashes ahead of all other financial elements and is pushing ahead with significant momentum. It is also important to note that Bitcoin has not embarked on this journey alone, but is dragging other cryptocurrencies along.
This recent behaviour of Bitcoin is having a reassuring effect on firm believers, and reigniting hope among the frail within the ecosystem. Once again, we are beginning to receive predictions of what would become of the leading cryptocurrency in 2020 and beyond. Finally, the focus is beginning to turn away from Covid-19 as far as Bitcoin and crypto users are concerned.
A Marketplace That is Not Affected by Lockdown
Having achieved a defined pattern of attacking the viral invasion, a lot of people seem to be returning back to their usual endeavours, especially those who have the privilege of working from home or anywhere else.
This is another point that could explain why Bitcoin and other cryptocurrencies are making a bounce-back ahead of the traditional markets. The Bitcoin and crypto ecosystem is completely digital and decentralized. Users do not have any reason to congregate in a physical location in most cases. As a matter of fact, the lockdown that is being implemented across many cities of the world makes no difference to the majority of crypto users. This explains why normalcy is returning quicker within this circle.
Considering these factors and many more, expectations have risen again in terms of the value of Bitcoin and the cryptocurrency market. Bitcoin bulls are taking over the market and resistances are being broken with new supports being created in the process. In a recent interview on CNBC, popular Bitcoin advocate Mike Novogratz, CEO of crypto merchant bank Galaxy Digital predicted that Bitcoin will at least retest the $20,000 level by the end of 2020.
Staking Integrity on Bitcoin Price
Novogratz, who is known for publicly staking his integrity when it comes to Bitcoin has not shied away this time. He has made bold his expectations and prediction by saying;
This is the year of Bitcoin and if it doesn’t go up now by the end of the year, I might just hang my spurs.
During the recent slump in price, Bitcoin fell to as low as $3,600. Since then, it has bounced back and even gone above $7,200 before making a slight retracement. At the time of writing the price of Bitcoin stands at $6,713 while holding an upside momentum. Perhaps, with the dust over Covid-19 settling and the fight more defined, the original expectations of Bitcoin might begin to come into play.
The year 2020 have been predicted to be the year that Bitcoin and the entire crypto ecosystem will become established. With the forecast of the global economy not looking so good, this might be a time for an alternative market to rise into prominence. Bitcoin knows no bounds and remains decentralized and universal. It is left for the world to see how the economies that will be hardly hit with the Covid-19 pandemic would react. Perhaps, there might be those that may seek solace in Bitcoin and crypto. This might not be by the will of the government, but by the reaction of individuals that may be trapped within the economies of currencies that may fail.
This is not a prediction of doom, but rather a subject of awareness to reignite the thought processes around the capabilities of Bitcoin and cryptocurrencies. As the world wallows in the pandamonium of Covid-19, it is important to consider what might become of one’s economic status when the air becomes clear.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.