Bitcoin is going to grow!
The world is in a state of panic due to the coronavirus pandemic. People are fighting over toilet paper, which shows the extent of nervousness. At such a time, even investors are likely to show irrational behaviors.
The governments are attempting to calm the markets by supplying enough liquidity, which is likely to run into trillions of dollars. However, even after that, the world economy might slip into a global recession.
The head of operations at Genesis Mining Philip Salter said that if the economic crisis does not deepen further, it “will not have major implications for Bitcoin and Ethereum.” However, if the crisis deepens and skepticism builds up, it might be favorable for Bitcoin and Ethereum because then people will see it as a hedge against the banking system.
CEO of Binance Changpeng Zhao said that the coronavirus pandemic “is just a trigger, not the root cause” for the current economic meltdown. This shows that the economy was on a weak footing because a strong economy should have withstood a few shocks. Zhao believes that the investors will stop hoarding cash at some point in time and will diversify their portfolio and Bitcoin and Ethereum will benefit from it because it is not “broken”. However, it might not happen in a hurry because “changes don’t happen immediately when a mass population is involved,” Zhao added.
The cryptocurrencies are attempting a recovery from their recent lows. Let’s analyze the top five performers of the past seven days to see whether the recovery will pick up steam or fizzle out.