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How Bitcoin began to grow despite the raging coronavirus

Throughout the past week, the cryptocurrency market has been falling, but yesterday the coins began to strengthen. Bitcoin per day went up by almost 25%, having won back everything lost during the last week. Experts believe that the coin is strengthened due to what it initially collapsed - coronavirus.

Over the past day, the market capitalization of all cryptocurrencies, according to Coinmarketcap, has grown by almost 20% - from 157 billion to $ 187 billion. This growth was the first in the cryptocurrency market since the spread of the deadly virus around the world.

The most popular coin for a day has risen in price and overcame the $ 6,700 mark, and is currently trading at $ 6,598. The cryptocurrency has not seen such a rapid growth since October 2019.

Bitcoin to US dollar rate per day
Bitcoin rate per day. Source: Coin360
Despite this, it is too early to talk about the restoration of the cryptocurrency market. As early as March 12, they paid $ 8,000 for 1 BTC, and a month ago a coin cost more than $ 10,000. The rapidly expanding COVID-19 pandemic collapsed in foreign exchange markets and stock indices. In the context of a sharp decline in production, closure of borders and a slowdown in the global economy, digital assets have also suffered. Traditionally, many have called them the best way to store savings in difficult times. The collapse of quotes was facilitated by the massive withdrawal of institutional investors from the market, who unexpectedly fell into difficult conditions and began to get rid of cryptocurrency assets to increase their liquidity reserves.

This is surprising, but the same coronavirus helps the cryptocurrency market strengthen. After decisions by central banks of different countries on maintaining or setting minimum interest rates, as well as launching programs to maintain dollar liquidity, the US national currency began to strengthen against other world currencies.

Investors again opted for US dollars, considering them the most reliable way to preserve assets. Because of this, the pound fell to a minimum level paired with the dollar, which was recorded in 1980. The Australian dollar has fallen to a 20-year low.

The Japanese yen and the Swiss bank, which have traditionally been a safe haven for investors in the most difficult times, are also actively selling out. Cryptocurrencies became the second tool to preserve assets after the dollar. There are no other assets that have established themselves as an equally reliable method of hedging.

Also on the Bitcoin network is not far off halving, in which the rewards of miners will be halved. This event will happen in mid-May, and this event will traditionally entail a long-term increase in the value of cryptocurrencies. In any case, that was exactly the case with the two previous halvings.

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