Coronavirus panic? ‘Crypto was built for a crisis like this’
Interest in cryptocurrencies continues to grow, with many seeing the recent price drops as an opportunity to buy crypto cheaply.
The digital markets have seen a dramatic fall from their 2020 peak, with crypto’s overall market capitalisation hovering at around $185B – having topped $300B just last month.
Yet so great is the panic that has gripped traditional asset classes and investments in recent days, Bitcoin and other cryptocurrencies remain an attractive alternative.
Crypto assets have steadied as COVID-19 has taken hold, with Bitcoin having regained some of the value it lost last week.
Trading at a little under $6,700 at the time of writing, crypto’s leading asset (in market cap size) remains down from its 2020 high, having topped $10,000 in February.
Yet optimism abounds, with this having been dubbed a ‘buyer’s market’ and predictions that an all-time high could be reached in the next 12 months as interest in digital assets continues to rise.
“The price of Bitcoin may set a new record in the next twelve months,” Dan Morehead, the founder and CEO of Pantera Capital, told CoinTelegraph this week. “Bitcoin was born in a financial crisis [and] it will come of age in this one.”
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Bitcoin remains dominant in the current climate
Crypto advocates might be spoilt for choice, but those eyeing altcoins are keeping a close eye on their assets as Bitcoin’s dominance continues to grow.
Boasting a market cap that is hovering around $122B, Bitcoin remains the biggest digital asset available.
It had been thought that 2020 could deliver the long-awaited altcoin season.
Yet it seems that the coronavirus crisis has strengthened Bitcoin’s position in the asset class, with one leading analyst predicting that ‘Bitcoin Dominance’ could reach 90 percent before things return to normal.
Bitcoin Dominance relates to its market value, relative to the broader crypto market, which comprises more than 5,000 assets.
That figure reached 68 percent this week and Qiao Wang, a New York-based angel investor, believes Bitcoin’s share of the market is set to increase even further.
“I’m no [Bitcoin] maximalist by any standard, but I fully expect Bitcoin Dominance to rise above 90 percent by the end of this economic crisis,” the Head of Product at Messari, wrote in a tweet.
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Cryptocurrencies are complex products with high price volatility. They are unregulated, without consumer or financial protections. Only risk what you can afford to lose.