How cryptocurrency prices reacted to Covid-19

How cryptocurrency prices reacted to Covid-19

  1. Stock Exchange
| | 1047 words
(Credits: La Tribune)
FOCUS DATA. In mid-March, at the time of the “Corona-crash”, digital currencies based on blockchain technology did not escape the cataclysm on the markets. But, unlike the values ​​of the stock markets, they are visibly raising their heads more quickly. From the beginning of April, bitcoin, the flagship of these “decentralized” electronic currencies, has visibly returned to its January 2020 level. Since then, virtual currencies have skyrocketed, with ethereum leading the way. Why are cryptocurrencies better resisting this crisis?

The crisis does not will not have the skin of cryptocurrencies. As global economic indicators turn red and the specter of the recession spreads, the parallel world of cryptocurrency remains on course. After suffering the shocks of the stock market in mid-March, the five most important “decentralized” electronic currencies (by market capitalization, according to the site coinmarketcap.com) were already back on their feet less than a month later. Even more visible, a large majority of the prices of these alternative currencies have exploded since the beginning of August. Are virtual currencies completely decorrelated from the economic situation?

>> Move the mouse over the graph to have a more precise view of the evolution of the indices ( see the methodology at the bottom of the article).

Dean of cryptocurrencies, the evolution of b itcoin (BTC) since its birth is giddy. When it was created in 2008, a bitcoin was worth around $ 0.001. The currency, created by a mysterious Satoshi Nakamoto who discovered how to validate a peer-to-peer (or block-to-block) trading system through a huge certified account ledger, is now worth more than $ 10,000. That’s close to its start-of-year value (over $ 8,000), but …

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