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The Downfall Of Cryptocurrencies During Covid19



The cryptocurrency is generally known as virtual currency or digital assets, is one of the most forward-looking markets and is expected to reach a size of $1.40 billion by 2024. Millennials, baby boomers, entrepreneurs, as well as small and medium-sized enterprises are interested in buying crypto because of the safe nature of digital assets and their transactions.

Despite a positive outlook, the reservations surrounding the rapid spread of Covid-19 outbreak is impacting the global economy and enthralling the people with fear. If you are planning to pursue a career in cryptocurrency, here is everything you need to know about the digital asset sector amid Covid-19 fears.  

7 Reasons Explaining The Downfall Of Cryptocurrency Amid Coronavirus Pandemic

1.     Value Of Cryptocurrency

As the Coronavirus outbreak rolls on, a positive correlation has been observed between the spread of infectious disease and an increase in crypto volume and market cap. After this initial trend, it was implied that bitcoin cryptocurrency is a stable source of securing liquidity. People were excited about the advantages of bitcoin and looking for unconventional ways of using cryptocurrency.  However, predictions of extended lockdowns and global Covid-19 cases hitting 50,000 results in a sudden shift in the trend. People started to assume the cost of unemployment and business shut down while investors spooked. Many industrialists are foreseeing the possibility of a second recessionary wave.

2.     The Pandemic Effect

Technically, cryptocurrency has helped the global financial system to overcome a few key challenges. However, the spread of Covid-19 disease, oil price war and the performance of stock market fuel panic across the globe and crypto market is no exception. The lucrative crypto market was not immune to such pressure, and the results were shocking. In Feb, the bitcoin prices reached its new heights with a market worth of $10,502. However, after a month, the bitcoin price sharply fell overnight and reaches a low of $3791. This means that the value of bitcoin has decreased by almost 50%.  

3.     Drop-In Price Means Less Capital

The fall in cryptocurrency prices means less capital. Here’s how. When the World Health Organization announced Coronavirus spread like a pandemic, digital risk assets begin to drop. The stock market faces its toughest days while the prices of bitcoin dropped. On the other hand, corporate debt, commodities, and real estate collapse severely.

4.     Lesson For Regulators

The Covid-19 impact on the cryptocurrency market draws several critical implications for the regulators. Given the fact that the newborn cryptocurrency sector is highly interlinked with the financial market, one key finding is that cryptocurrency markets should be viewed as a foundation of systematic risk for the conventional financial systems in times of crisis.

5.     Raising Capital Is Harder Than Ever

Since the Initial Coin Offering (ICO) investments fall 95% and the market collapsed entirely amid the Covid-19 outbreak, start-ups are now looking towards venture capital to acquire funds. However, the uncertainty that comes with the Covid-19 has become much more frustrating over the past weeks.  Since venture capital companies are giving off funds, investors are more interested in hearing about the business plan and evaluating them more critically. But in this pandemic situation, it is nearly impossible to organize in-person meetings.

6.   Crypto Conferences Postponed

When the deadly infectious diseases cross the border of China, it becomes common knowledge that the virus is no longer the headache of Chinese. As the disease spread to other countries, the bitcoin conferences and blockchain meetups have also been canceled or postponed. The only option left for them is to host a virtual event. Over the past few years, the cryptocurrency market has been overwhelmed with conferences and meetings, and that is why a pause is not so damaging for the community for a short period.

7.     It Isn’t The End Game

Considering the on-going Covid-19 pandemic and deteriorating macro-environment situation worldwide, it can be said that the crash in the crypto market was pretty much expected. However, it doesn’t mean that the cryptocurrency market has no future. Despite the sadistic downfall of the market, industrial experts believe that appropriate fiscal policies and active role of government can help the sector to revive and deal better with global crises in the future.


Despite the hurdles, investors have high hopes from the cryptocurrency market. Cryptocurrency is a substitute to government-issued fiat money, and undoubtedly it will recover soon in the post-coronavirus era.

Author Bio

John William is a Finance Manager at Assignment Assistance, a trusted platform that offers ‘best assignment writing service UK’ to undergrads and grads. His decade of experience allows him to excel in his current role where he’s committed to educating people on the latest digital trends and their impact on industries.

The post The Downfall Of Cryptocurrencies During Covid19 appeared first on Cryptoverze.



Bitcoin Price Analysis: BTC Facing The Ultimate Make Or Break Level Of $11,000




  • Bitcoin price is pivotal between the 50-day SMA and $11,000, suggesting possibilities of consolidation taking over.
  • The impact of an ascending wedge is kept at by the 50-day support, breakdown back to $10,000 is still in the picture.

Bitcoin has spent the last three weeks trying to recover from the dip at the beginning of September. There was a break above $11,000 last week, but BTC hit a wall at $11,200, allowing bears to take back control. Since then, support has been established above $10,700. Unfortunately, resistance at $11,000 has stayed put.



Meanwhile, the flagship cryptocurrency is trading at $10,960 amid attempts to overcome the resistance at $11,000. BTC/USD is also trading at the tip of an ascending wedge pattern. If the hurdle at $11,000 is pushed into the rearview, there is a likelihood of Bitcoin soaring towards $12,000. However, if the rising wedge’s impact comes into play, BTC could embark on a gains-trimming exercise towards the support at $10,000.

Read more: Bitcoin Trading Volume on Bakkt Peaks Again as September Expiration Approaches

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

The 50 Simple Moving Average (SMA) in the daily range is in line to offer initial support at $10,850. As long as Bitcoin holds above this level, the potential for gains above $11,000 will remain high in this week’s trading.

The Relative Strength Index (RSI) hints that the largest cryptocurrency is ready for consolidation by leveling marginally above 50. Moreover, the low trading volume means that BTC is less volatile at the moment. The reckoning level remains at $11,000, where Bitcoin can either kick start the journey to $12,000 or embark on a reversal to $10,000. Either way, it is essential to wait for a confirmed breakout before going all-in on BTC/USD.



Bitcoin Intraday Key Levels

Spot rate: $10,655

Relative change: 41

Percentage change: 0.39%

Trend: In consolidation (short term)

Volatility: Low

Read more: Bitcoin Price Analysis: BTC Eyes $12,000 If 50-day MA Flips Into Support

To get the daily price analysis, Follow us on TradingView

Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige


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Profit taking Bitcoin miners won’t stop the next bull run: On-chain analyst



Historical data shows that some miners began to sell Bitcoin (BTC) at the end of July, leading to increased selling pressure in the cryptocurrency market.

Eventually, the dominant cryptocurrency fell steeply from mid-August, recording a 13% fall and since then BTC has struggled to retake the $12K mark.

Bitcoin selling by miners from 2017-2020. Source: CryptoQuant

Bitcoin selling by miners from 2017-2020. Source: CryptoQuant

According to CryptoQuant CEO Ki Young Ju, continued selling by miners might not be enough to prevent a bull run. On-chain data analysis firms closely observe the movements of miners and whales because they hold significant amounts of BTC.

Willy Woo, an on-chain analyst, explained that miners represent one of the two external sources of selling pressure for Bitcoin. He previously said:

“There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.”

When miners start selling their Bitcoin holdings, typically to cover expenses, it could trigger a correction in the cryptocurrency market.

For instance, From Aug. 17 to Sept. 5, the price of Bitcoin dropped from $12,486 to $9,813. During that time, several whales sold Bitcoin right at $12,000 and the same behaviour was observed amongst miners.

The selling pressure coming from miners and whales noticeably has been attributed to the current crypto market slump but in the longer term, Ki explained it is not enough to stop a prolonged bull run.

If miners abruptly sell a significant amount of BTC, it could cause a severe correction as a small price movement could trigger liquidations from heavily-leveraged traders. Hence, even a relatively small sell-off by miners could theoretically cause massive price swings.

Ki says the intensity of the sell-off from miners was not strong enough to halt future bull runs. He said:

“Miner Update: Some miners began selling at the end of July, but I think in the long-run, miners didn’t sell BTC large enough to stop the next bull-run.”

According to ByteTree, the net inventory of Bitcoin miners declined by 125 BTC per week in the last 12 weeks. The data indicates that miners sold approximately $1.362 million BTC per week week atop the BTC that they mined and sold.

Amount of BTC mined and sold in the last 12 weeks. Source: ByteTree​​​​​​​

Amount of BTC mined and sold in the last 12 weeks. Source: ByteTree

As Ki emphasized, the data shows that miners sold substantial amounts of BTC, but not in amounts that were irregular to normal behaviour.

Post-halving bull cycle remains a possibility

Bitcoin is still hovering above the critical $10,000 technical support level despite multiple attempts by bears to drop the price below the key level.

The resilience of Bitcoin amidst a heightened level of selling pressure suggests a cautiously bullish trend in the long term.

The Bitcoin short-term holder NUPL. Source: Glassnode

The Bitcoin short-term holder NUPL. Source: Glassnode

Several on-chain metrics also indicate that now is a healthy accumulation phase for Bitcoin. Rafael Schultze-Kraft, the CTO at Glassnode, said:

“Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) with a #bullish signal here imo. That bounce of the 0-line was important, is very characteristic for previous bull markets, and historically a good buying opportunity.”


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Crypto exchange bitFlyer Europe links up with PayPal, enabling account deposits with euros

Crypto exchange bitFlyer Europe has announced integration with PayPal, allowing users to deposit funds using their PayPal accounts to buy cryptocurrencies.

The post Crypto exchange bitFlyer Europe links up with PayPal, enabling account deposits with euros appeared first on The Block.



Crypto exchange bitFlyer Europe links up with PayPal, enabling account deposits with euros – The Block

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