BTC is Possibly among the Last Assets Still Trading in The Market Crisis
Many stock markets across the world may likely close due to the recent pandemic. BTC could save the financial world after the current crisis comes to an end. It has survived any shutdowns caused by the Coronavirus. The cryptocurrency market runs throughout, setting it apart from any other financial market.
News media worldwide has been reporting that a shutdown of stock markets may be on the table. Traditional financial markets have been immensely devastated as the world goes into lockdown.
The New York Stock Exchange intends to move to all-electronic trading next week. [NPR] Other countries have been mulling over the proposal. However, it is risky—in the Philippines, a shutdown of the national stock exchange led to a 24% plunge this past Thursday. [The Straits Times]
Crypto markets have also witnessed an incredible recovery recently. It seems BTC may have just ‘reset’ its fair value together with its reputation as a haven asset during the world crisis.
Crypto Markets Challenging Traditional Stocks
Recently, many top crypto assets posted almost double-digit gains despite the resurgence of BTC. Bitcoin has recovered to reclaim $6,500 as at the time of writing. The entire crypto market has seen nearly $20 billion added to the total market capitalization, currently around the $185 billion levels.
The cryptocurrency market never sleeps, meaning it might find itself in the strange position of being the only market surviving in case of a massive shutdown of stock exchanges globally.
Just a few sectors have been showing resilience amid this global market collapse, with extreme measures now on the table. Actions to halt financial and commodities markets will only grow MORE strict.
The traditional financial system is in trouble, and a global recession is now pretty much inevitable.
BTC may be a haven asset amidst the current global financial market’s instability.
A week ago, BitMEX Research published a detailed analysis of the ongoing impact of Coronavirus on the financial markets describing the pandemic’s financial market crash as the worst economic incident since the 2008 financial crisis. BitMEX Research insists that BTC could emerge as a clear winner from it all.
BitMEX also noted that it could be the most significant chance that Bitcoin has seen in its short life in this changed economic regime. The economy and financial markets could lose, with no considerable anchor nor inflation targeting.