The emergence of the new Covid-19 has had a sweeping effect on the countries across the world. European markets slumped, and a lot of experts drew some parallels with the crisis which plagued the world in 2008.
Bitcoin suffered greatly. The cryptocurrency which once hit a maximum of almost $20,000, no struggles at 5,900. There was a particular moment on March 12 when Bitcoin hit one of the lowest rates in recent years, $4,900.
While there has been a significant drop in BTC, a lot of entities are actually benefiting from it, and this article will revolve around this topic.
What caused the fall of BTC?
The main accelerator of Bitcoin’s decline has been the drop in Dow Jones Industrial Average. While a lot of people only focus on coronavirus as the sole reason for Bitcoin’s declining price Eric Thies who is a technical analyst and cryptocurrency trader has brought forward the dispute between Russia and Saudi Arabia about oil prices. He mentioned that a lot of people are currently listening to the news concerning the coronavirus and do not pay attention to the ‘oil war’ happening between two major countries on the international stage.
Who will benefit from the current situation?
One of the main winners of Bitcoin’s price drop could be the gambling industry. As technology evolves, a lot of online casinos start to adopt cryptocurrency as a method of payment. It is deemed to be a more effective, secure and fast method of transaction. However, as the price is declining, some of the best casino online providers could actually encourage their customers to put on more money via Bitcoin. They might keep it for some time and wait for the situation to be resolved, so when the prices get high, they could manage to sell it at a higher price. And everyone knows that the current fall of Bitcoin is temporary – it will return to its previous level.
Gold investors can actually profit from the situation as well. Gold is considered to be an asset that rarely loses its value. It is a safe haven for investors regardless of the situation in the world, and current conditions are no different from the others. While the price of Bitcoin is low people can find some time to invest in gold.
Crypto traders who are just beginning to become traders are winners too. You know how volatile Bitcoin’s price is. It could be $4,000 at one moment and reach $15,000 at another moment. Newly-emerged traders can find themselves in a situation when they can purchase Bitcoin at $5,000, for instance, wait for the situation to calm down and when it reaches its usual digits, sell BTC to earn some extra money.
While coronavirus is still roaming the world, the prospects for Bitcoin to go back to its old shape looks unlikely. So for the time being, various entities can make use of the fact that cryptocurrency ‘king’ is in a declining state.