Bitcoin’s Coronavirus Journey

he coronavirus has been one of the most damning events to happen to the United States stock market in its history. The virus, which began in China, has so far infiltrated every aspect of the world and it continuing a rampage.
Governments have been forced to issue stay-at-home orders across countries. This means that companies are unable to perform at their full capacity, and more people are getting laid off by the day.
Stocks Could Only Rebound Due to Bailouts
Tech stocks and a few other companies have been able to weather the storm to a considerable degree, but it’s quite obvious that the entire stock market is teetering on the brink as it is.
In March, reported confirmed that the country’s stock market saw its biggest drop since the crash of 1987. At the time, President Donald Trump explained that the United States might be heading for a recession. Soon after, the Dow Jones Industrial Average index closed down 12.9 percent.
On the same day, the FTSE Index in London closed 4 percent down, while major markets across Europe saw similar drops.
Things did get better, but it was only after governments began to dole out the cash in droves. The United States is estimated to spend $10 trillion in bailout money by the time the pandemic blows over, and other major markets have approved funds to help companies – especially those in the smaller and medium scale – to stay afloat.
It’s worth noting that things have picked up a bit since then. Several regions are signaling that the increase in the number of infected people has been dropping, thus causing many to believe that the curve is flattening.
Such news has prompted several states to reopen, with companies now returning to work and business activities returning slowly.
As expected, news such as this has driven the stock market back up. However, it’s still nowhere near the levels it was before the pandemic hit. Analysts estimate that the market won’t recover for a while, so most people might be looking to cut their losses.
Bitcoin’s Coronavirus Journey Thus Far
With the market stalling, many investors have been looking for means to keep their money in alternative assets. As expected, Bitcoin has come up in the conversation.
The top cryptocurrency is coming off a hot decade. Bitcoin emerged as the most profitable investment asset in the last decade, and it was able to outperform other assets last year despite starting on a bit of a weak foot.
Bitcoin moved into 2020 with grace and intent. The assets soon racked a value of over $12,000 per token, and investors were especially excited about the prospect of another bull run. There was also the fact that Bitcoin’s halving was on the way. Historical data had shown that Bitcoin’s price always went on a surge after a halving, and many expected the same case to repeat itself.
However, the coronavirus came and immediately put all that hype on a halt. In mid-March, Bitcoin experienced a significant drop that saw its value crash down to $3,800. However, the asset was able to consolidate and rally to higher levels.
At press time, Bitcoin holds a value of $9,450. The halving also helped, as it essentially solidified Bitcoin’s place above the $8,500 comfort zone. So, in a matter of two months, the top cryptocurrency survived a scary drop and gained over twice its value.
While the traditional stock market continues to teeter on the brink, Bitcoin holds firm.
Stocks Could be In for a Rougher Future
There have been several calls for people to invest in Bitcoin already. Earlier this week, Victor Dergunov, the co-founder of Albright Investment Group, explained in an analysis that Bitcoin investors should be ready to pounce as soon as a stock market dips even more.
In the article, Dergiunov explained that there is a significant possibility of the stock market crashing yet again. Despite the bailout month that the government has spent, stocks just don’t have the right fundamentals. If this does happen, then people should look into alternative assets – especially bitcoin – as a means of hedging against any rick and protecting their wealth.
Despite the fact that Bitcoin has yet to cross the $10,000 mark, Dergunov is holding on to his optimistic view. He did admit that Bitcoin had found a bottom at the $8,700 price level, but there’s a possibility of things getting better soon enough.
“A break above $9K represents a momentum change in my view,” he wrote, adding, “Next, BTC should test the $10K level and plausibly break out higher after that,” he explained.
Bitcoin isn’t the only alternative asset, of course. There are oil and gold. However, Bitcoin provides better returns and better chances of imp