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28.10.202013:03 Analisi di revisione Forex: How COVID-19 may affect bitcoin?

Revisione a lungo termine

Exchange Rates 28.10.2020 analysis
This spring, due to the pandemic, bitcoin fell by 50% to $3,800, stock indices also slumped by 20-30%. Only gold managed to benefit from this situation, almost reaching a historical high. Thanks to the help of the central banks, stock indices quickly returned to pre-crisis levels. Bitcoin, in turn, began to rise rapidly.

Market experts argue that the second wave of COVID-19 will not lead to another crash as too much liquidity has entered the markets. In case of a decline, new stimulus programs will be launched, and investors will buy various assets, including shares. Experts suggest a jump in bitcoin amid this situation.

By the way, according to the World Health Organization, the number of fixed coronavirus cases in the world is almost 43 million. More than 1.15 million of them died.

Besides, there is uncertainty in the markets because of the US presidential elections that will take place in a few days. However, the market is unlikely to show negative dynamic. Market participants are awaiting information on new economic incentives from central banks.

On the other hand, some experts believe that the second wave of coronavirus will be much larger and will cause enormous damage to the economy. However, experts agree on one thing - the crypto market will grow.

Firstly, bank rates are low. That is why more and more traders are investing in digital assets. Secondly, large investment funds, banks and billionaire investors have entered the market. Finally, cryptocurrencies, especially bitcoin, have become one of the leading assets in 2020, competing with gold.

Analysts suggest a slight fall that will be followed by long-term growth. This will be facilitated by the inflation of world currencies due to QE and bitcoin's jump above the level of $12 thousand. According to forecasts, by the end of the year, the cryptocurrency will soar to $14-17 thousand.

At the same time, analysts of the US JPMorgan investment bank, on the contrary, did not recommend buying bitcoin now. They explained that the asset is overbought and may soon begin to fall. However, in the long term, BTC can rise by 100-200%, as the company stressed.

The growth of cryptocurrency is also driven by investments from public companies. So, Microstrategy invested $425 million in Bitcoin, and payment company Square invested $50 million in a digital asset as well.

Many traders are also interested in cryptocurrency. The number of registered traders in April 2020 was twice as high as in December 2019. The number of registrations, the number of deposits and other parameters on crypto exchanges continue to grow.

By the way, the bitcoin rate has updated its annual maximum. Since the beginning of the month, bitcoin has grown by 26%, having risen above $13.4 thousand. The previous record of this year of $13.3 thousand was set on October 25. After that the bitcoin price fell below $12.9 thousand.

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Analista del: Kate Walter
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