Recently, the Philippines Stock Exchange (PSE) announced that they have stopped trading from the 17th March 2020, until further notice. Philippines became the first country to close its financial market due to Covid-19, also known as the Corona virus. If the Corona virus continues to rapidly spread, other countries may follow its lead. In times of such uncertainty, traders and investors could diversify and continue trading cryptocurrency which stays open 24/7, has billions in market capitalization and provides lots of opportunities due to its numerous pairs. Best part is, it requires no face to face or physical location interaction. People can trade with their safety in mind.
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Initially, cryptocurrency was dubbed as a safe haven asset given its remarkable rally in January 2020 and some parts of February 2020. During that rally, the leading cryptocurrency by market cap, Bitcoin even breached past $10,000 from its previous levels of $3,000 a year earlier. However, that trend didn’t continue with major cryptocurrencies losing as much as 50% of its value in.
Despite the drastic drop, the experts from FXStreet reports show signs of optimism and say it will potentially bounce back at the rate of its relentless bullish trend. Inadvertently, the market could provide an opportunity for a second wave of traders to get in. Bitcoin, the largest currency by market capitalization, is trading close to $5,400 at the time of writing while Ethereum and XRP are trading at about $117 and $0.14 respectively.
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In addition to its signs of bullish formation of crypto, Forbes reported that major countries such as the United States and Spain are considering helicopter money style stimulus for their citizens to have some spending cash. Keld van Schreven, co-founder and managing director at blockchain investment firm KR1, replied that “Bitcoin is built for these events”, adding that “Bitcoin, ether and other crypto networks needs no bail out. They just need a handful of servers to run, verify and complete transactions. Bitcoin, ether and other crypto has taken the weakest link out. This only makes it stronger”. As supply of Bitcoin cannot be increased and values only increased by demand, and not synthetically increased by other mediums or entities, it is a safer long term form of value.
While stimulus packages are in the works, the fact other countries are suffering from the Corona virus and showing signs of uncertainty still remains. According to Bloomberg, Malaysia already announced a work from home order and a temporary lockdown, for all non-essential businesses effective 18th March 2020 till 31st March 2020. The drastic move is to limit the spread of the virus as the country registered a random spike showing the highest number of cases in the region with, 553 cases and 2 deaths.
If the virus is not contained soon, other markets may begin to close leaving many without an avenue for investment or income. Start making moves, create a trading plan and build your portfolio in the cryptocurrency markets which will not have to be closed due to close proximity or human contact, trade digital currencies. Sign up now at https://www.vhcex.com/signup or download our app by scanning the QR code below.