Bitcoin is on the right track

After an encouraging start to the month, with the Bitcoin price over $ 9,000, the crypto market suffered a flash crash on March 12. BTC collapsed to $ 3800 on March 12. This has led to the sharp decline of most cryptocurrencies.

The coronavirus pandemic has created a crisis in the financial market, which has severely affected the stock markets and the crypto market. The population quickly sold all the security assets to get cash. Fortunately, the situation did not last very long.

Bitcoin is on the right track

Unlike stock exchanges, which have required massive cash injections from central banks, Bitcoin has gradually recovered much of its losses. The cryptocurrency ended in March around $ 6,000.

Analysts point out that, despite the precarious economic situation, the long-term outlook is positive for the crypto market. The traditional financial market is preparing for a new crisis, exactly the situation that gave birth to Bitcoin in 2008. As such, Bitcoin is on the right track to prove that it is an ideal security asset, which does not suffer from inflation that will affect fiat currencies. .

Ethereum continues the upgrade plan

In turn, Ethereum seems to survive the crisis. The March 12 price crash caused the price to drop from $ 240 to less than $ 100. This has created problems for the DeFi ecosystem, especially MakerDAO. The fall in the ETH price has led to massive liquidations of user deposits. As a result, MakerDAO recorded losses of approximately $ 8 million. To recover them, the lending system issued new MKR governance tokens.

Currently, Ethereum is trading around $ 130 and is continuing plans to upgrade to ETH 2.0. According to Vitalik Buterin’s statements, the ETH2.0 multi-client testnet is due to be launched in April.

Digital currency in the plan of the authorities

An important evolution generated by the coronavirus crisis was the return to the foreground of the concept of digital currencies. In the context in which the central banks need rapid intervention on the market, and the population avoids cash for fear of contamination, the idea of ​​CBDC is increasingly present.

Sweden, the UK and China are already testing the concept. Even the US Congress recorded the digital dollar mention in the bills prepared to stimulate the economy.

So, as the world prepares for an economic crisis, the crypto market has adapted to the new realities. The block reward reduction for Bitcoin will take place under ideal conditions to generate explosive price growth. Many users have been aware of this fact, which is demonstrated by the fact that the number of portfolios containing more than 1 BTC is approaching the record level of 800,000.