- Amidst cascading markets due to the global lockdown, Cryptos are likely to be the only assets left standing
- Bitcoin has recovered lost ground recently and appears to have ‘reset’ its fair value
- BTC could save the world economy after the current crisis comes to an end
Traditional financial markets have been devastated immensely as the world goes into lockdown. At the same time, Crypto markets have witnessed an incredible recovery recently, and it appears that BTC may have just ‘reset’ its fair value along with its reputation as a safe haven asset during the world crisis.
Bitcoin has recovered to reclaim $6,500 at the time of writing, a move that has lifted the entire crypto market with around $20 billion added to the total market capitalization, which now sits at around the $185 billion levels.
This is nothing unusual for digital assets, however, as they normally bounce back a bit following a steep decline.
Meanwhile, news media around the world has been reporting that a shutdown of stock markets may be on the table.
Crypto Markets to Remain Open as Traditional Stocks Face Closure
The cryptocurrency market can’t ever be shut down, which means it might find itself in the strange position of being the only market standing in case of a massive shutdown of stock exchanges globally.
With extreme measures now on the table, only a few sectors have been showing strength amid this global market collapse, and it seems possible that calls to halt financial and commodities markets will only grow louder in coming weeks.
What is almost guaranteed is that the traditional financial system has a lot more pain in store, and a global recession is now pretty much inevitable.
Bitcoin To The Rescue
BTC is widely anticipated to prove itself as a safe haven asset amidst the current global financial market’s instability.
For instance, On March 17, 2020, BitMEX Research published a detailed analysis of the ongoing impact of Coronavirus on the financial markets. The blog post describes the COVID-19 financial market crash as the most catastrophic economic incidents since the 2008 financial crisis.
BitMEX Research emphasized that BTC could emerge as a clear winner from it all:
“In our view, in this changed economic regime, where the economy and financial markets are set loose, with no significant anchor at all, not even inflation targeting, it could be the biggest opportunity Bitcoin has seen, in its short lifetime.”