As the most popular cryptocurrency in the world, Bitcoin’s market position is still significantly above the competition. Local markets have had quite the year so far in 2020 while they deal with the ongoing Coronavirus pandemic. Even as the local economies battle out of the current pandemic slump, cryptocurrency is gaining speed and popularity among investors.
The Correlation of Bitcoin’s Market Position and the Global Economy
When examining the cryptocurrency market, one can make some assumptions of the movement mirroring traditional worldwide financial markets. Often there are correlating trends that have appeared between the digital currency market and traditional investment markets.
As the world dealt with a declining economy due to the COVID-19 pandemic, many markets began to show fluctuations. Cryptocurrency was not immune to this dynamic movement, and many digital tokens decreased in market value. Bitcoin has been one digital asset that is still contending with a declining value, even after May’s popular halving event.
Popular Cryptocurrency Market Prices
Currently, Bitcoin’s market position is sitting at $168.12 billion USD, keeping it at number 1 with a price of $9,415.98. Ethereum holds the number 2 spot at $25.25 billion and Ripple a close third sitting at $8.63 billion. For many, Bitcoin, Ethereum, and Ripple are synonymous with cryptocurrency and are popular choices for digital portfolios.
Not surprisingly though, Bitcoin has faced some lower market prices in the 2nd quarter of 2020. This bearish movement has taken Bitcoin away even more from the famed $10,000 mark. Investors hope that in the 3rd quarter they will see a more bullish run towards highs reaching $13,800 or beyond.
Will the Cryptocurrency Market Rebound Successfully?
With the slow climb out of the deep economic hole that the Coronavirus pandemic created, worldwide markets are still struggling. Bitcoin’s market position may not be a direct result of COVID-19 per se, as it did have some positive impact. Many digital assets have seen a rise in trading since the beginning of 2020, presumably from increasingly new investors.
Recently Argentina has set a new record high in Bitcoin trading even amongst the declining local economy. The exchange platform LocalBitcoins has reported more than 100 million pesos worth spent on Bitcoin trading. This increased investment activity comes as no surprise since Argentines have been in lockdown to deter the spread of COVID-19.
Is Cryptocurrency the Future of Investing?
Digital assets are quickly gaining popularity in recent months, boosting Bitcoin’s market position, along with numerous other tokens. Crypto investments have shown their necessity as the world experiments with a cash-less society and touchless payment options. No one is certain exactly how long the pandemic threat will last, and crypto seems like a reasonable payment solution.
As society turns away from traditional cash, digital money like cryptocurrency will be preferred and accepted more openly. More and more online vendors, like PayPal, are accepting cryptocurrency and offering it to users. The increased availability of crypto amplifies the necessity, so more vendors turn towards digital options for a means of payment.
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