Coronavirus has been wreaking havoc all around the globe, infecting more than 870,000 people around the globe. As a result, stock markets have been crashing, with most cryptocurrencies following suit.
However, Bitcoin has once again proven its ability to survive under so much pressure, performing better than several major indices since COVID-19 broke out earlier this year.
Beating America’s Top Indices
America prides itself on its top tier indices that boast some of the biggest publicly traded names. Since January, the Dow Jones, S&P 500 and Nasdaq have been taking a brutal beating, with the Dow Jones losing 23% of its value – it’s worst first quarter loss in history. Following up closely, the S&P 500 was down 20% in the first quarter, with the NASDAQ down 14%. In comparison, Bitcoin only slid 10% during the first quarter of 2020, showing its resilience and strength during times of financial crisis.
Not Quite Strong Enough
Many people in the crypto sphere believe that during the next financial crisis, Bitcoin will emerge as the new global currency of choice. But, given its massive slump in value during the COVID-19 crisis, people are starting to doubt that this could become a reality. Bitcoin’s slump was too great if it is to survive a global economic catastrophe. True, it did slide half as much as the top American indices, but if these all slid to 0 and left America in tatters, Bitcoin too would slide by an incredible amount. If Bitcoin is to replace the almighty dollar, steadier hands are needed to stop the panic selling caused by global markets falling.
Bitcoin and its core fundamentals are starting to waver as the COVID-19 crisis rolls on, with many looking for alternatives. With no end in sight for the COVID-19 virus and economic fallout, many are wondering when Bitcoin will rise back to its December highs. If layoffs continue, hodler will eventually be forced to sell or trade their Bitcoin for real world goods, commodities and services, further weakening Bitcoin’s economic outlook.
