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Is The Latest Coronavirus Update Still Affecting the Cryptocurrency Market?

It is no surprise that outside factors affect the world markets, and a negative Coronavirus update can sway potential investors. Alternatively, a positive update can give investors hope and provide the markets with a boost. The worldwide economy has taken a beating these past few months with the global pandemic. Despite this, many markets around the world, including the digital currency market, are looking hopeful for a rebound soon.

The Current Worldwide Coronavirus Update

At the time of writing, the current confirmed cases of Coronavirus have reached a total of 3.93 million people. Of all these cases, 1.31 million individuals have recovered, and 274,000 individuals have died due to this highly contagious virus.

The United States tops these statistics as the most active cases and deaths. Something this grand in scale will indeed affect many facets of the community, from employment to hospitals, and the economy. No global market is immune to the current Coronavirus pandemic, including the worldwide cryptocurrency niche.

coronavirus update

The Domino Effect

Whenever something is affecting the local economies, like a pandemic or an environmental disaster, it has drastic implications. Many businesses rely on purchasers or suppliers outside of their local area. If outside factors create a stoppage of buying power or supplies, the local economy declines. When local businesses suffer, it trickles down to the global economies, creating a much larger issue.

Rarely will such a large-scale situation not affect multiple industries throughout the world, although it can take some time. Many things, like mass unemployment and shortage of supplies, do not happen overnight but build up continuously. Often multiple closing businesses will begin to start a decline of lower-income for individuals, carrying on to more factors. With less disposable income, some potential investors may not be inclined to separate with their money during this volatile time.

How The Cryptocurrency Market Is Handling The Pandemic

Surprising to some, the crypto market isn’t in as dire straits as some would have first thought amidst a pandemic. This can be for several reasons:
• When traditional investments lose value, investors turn to digital currency as an alternative.
• Some investors see cryptocurrencies as a separate entity from the economy, and movements don’t always mimic the global financial markets.
• Stablecoins seem to have taken on more popularity than more significant digital coins like Bitcoin or other altcoins during this pandemic.
• Many more individuals are working remotely, while crypto enthusiasts have been doing this beforehand with little impact on their work.

But there have been some negative results after a Coronavirus update in a few ways, including:
• Cryptocurrency conferences have been canceled indefinitely.
• Raising capital funds for start-ups becomes more difficult due to the volatile global economy.
• Some cryptocurrencies have been acting very volatile mimicking some global economic markets.

In a time of uncertainty, it can be hard to look forward and remain positive. It seems though even with the negative factors surrounding the cryptocurrency market lately, it remains as a strong niche. Investors are holding their breath that the worst is over and there are green skies ahead for cryptocurrencies.

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