Corona pulls Bitcoin to its limits – has the digital gold become useless?

The corona crisis thus brings some curiosities to light. For example, there are real fights for toilet paper packs in supermarkets. But while retail business is booming, capital markets are suffering from the current circumstances. Currently, the crypto community in particular has to learn that the leading cryptocurrency Bitcoin is not the safe haven that it was advertised as. Only in the recent past have numerous experts described the cryptocurrency as digital gold, thus creating the myth of a crisis-proof currency. But often the first impression can be deceptive. Bitcoin may still have the potential to be a safe haven or digital gold no longer exists – let’s take a look at the situation.

 

Cryptocurrencies collapse thanks to Corona

ue to the recent price crashes, it can be said that Bitcoin is simply not the safe haven that many investors expected. This has clear effects for the entire crypto industry as well as for private and institutional investors. Market analysts already expect the entire world of cryptocurrencies to face a reassessment due to the corona pandemic.This thesis appears to be valid when looking at the current market.

 After all, Bitcoin had to endure a price drop of up to $ 3,600 within a few days. As a result, investors have since seen the cheapest price since April 2019. However, a revaluation is currently taking place, so that the Bitcoin price is highly volatile. Apparently, many investors use the opportunity to buy cheap Bitcoin. BTC started the rally last Friday and saw a price increase of 22 percent. Overall, the crypto market recovered $ 24 billion.