Are you an enthusiast Bitcoin investor? If yes, then you might be well aware of the present condition of Bitcoins in the crypto trade Bitcoin’s market. Yes, it is true that cryptocurrencies, including Bitcoin, have suffered a significant loss in the market today. However, the considerable downfall has not begun the trail of losses; it all started in 2020 when the world faced COVID-19 for the first time!
If you are curious enough to know the details and impacts of COVID-19 on Bitcoin prices, then go through the following article to find out more to have an overall better understanding!
Crypto Trade Market Losses Caused by COVID and Omicron
As we all know, the world has been suffering from the deadly claws of the COVID-19 pandemic since 2020. But the only platform that faced the worst losses was none other than the most significant cryptocurrency, Bitcoins.
There are various reasons behind such a massive downfall of the Bitcoin price in the cryptocurrency trade market due to the commencement of the pandemic situation. However, if you are not yet aware of the impacts of COVID-19 on the cryptocurrency prices, then here are a few primary reasons behind it:
- Extensive Volatility:
If you follow some crypto enthusiasts or influencers, you would be well aware of the volatile nature of the cryptocurrency trade market. The volatility factor is moiré applicable in the case of the best cryptocurrency, Bitcoins.
The volatile nature of the trade market makes the Bitcoin prices fluctuate to some great extent which enhances the possibility of throwing losses and profits upon the traders and investors at the same time at a rapid rate. The COVID-19 situation in the world had somehow made the Bitcoin trade market more fragile and extensively volatile simultaneously.
- Inflation In Price:
One of the most significant factors that occurred due to the COVID-19 pandemic in 2020 and the following years was terrible inflation in prices. All the manufacturing industries and firms had suffered terrible losses from the effects of COVID-19 as the masses could not go out and stayed locked up at homes due to lockdowns everywhere.
Thus, no businesses had made profits in those years, and so did the bitcoin prices. The rapid inflation in prices of accommodations all around the world had made the cryptocurrency trade market immobile to some extent, thus, leading to terrible losses and downfalls in Bitcoin prices. If concepts regarding the bitcoin prices are unclear yet, then you can check out the platform. This platform has been developed for a worry-free trading experience. Besides, they specialize in Bitcoin investment.
- Immobility Of The Market:
The COVID-19 pandemic has brought about a drastic change in the economic condition all around the world. Industries and various companies faced terrible losses due to low rates of profits; such situations even shut several firms down forever!
However, such situations have led to the immobility of the cryptocurrency trade market simultaneously. If you had enough time to explore the cryptocurrency trades market, especially those related to Bitcoins, you would know that an immobile but volatile trade market can only lead to losses and severe crashes.
- Effects Of The Stocks Market:
The other primary reason behind Bitcoins’ price drop is the stock market’s effect on the cryptocurrency trade. If you have enough experience, you should know that the stock and trade markets are interlinked extensively. If one of the two falls, then the other one falls along too. Thus, when the pandemic situation had arrived, the stocks market, a platform dealing with physical assets, faced terrible downfalls, leading to the drop in bitcoin prices simultaneously.
Apart from all the above factors, Omicron also played a pivotal role in cryptocurrency. The cryptocurrency Omnicrone had a profit rate of 900% when the third wave of COVID-19 hit. The cryptocurrency had faced such high-profit percentages because of sharing the same name with the virus.
Like most times of the year, this cryptocurrency probably does not meet many profits at any point. The current situation of the crypto world is terrible and has not been able to stand up strong yet, but if all the crypto freaks stand strong together, then Bitcoin prices will increase in no time soon!