The coronavirus pandemic has impacted everyone, infecting millions of people all over the world, leaving millions of people dead. Even though it is good that there is a vaccine available for people in many parts of the world, this medical crisis has also left an economic one in its wake, leaving many people looking for answers. In addition to small businesses closing their doors and individual families struggling to make ends meet, the markets have suffered as well. Individual stock markets, including the NASDAQ and New York Stock Exchange (NYSE), dipped massively at the start of the pandemic. Has the same been true for the cryptocurrency exchange options?
Cryptocurrency Exchanges Took a Hit at the Start of the Pandemic
Just as the traditional stock markets took a hit at the start of the pandemic, the crypto exchanges took a hit as well. Those who were looking to use crypto investments as a way to make some short-term cash at the start of the pandemic ended up severely disappointed, as crypto prices dipped quickly. Even though they did not get nearly as low as they were ten years ago, they still took a hit.
There are some people who are wondering why these markets dipped so quickly. A lot of people believe that certain crypto markets started to dip because people needed a source of liquid cash to cover their short-term expenses. For example, some people ended up losing their job and had to pull money out of the markets in an effort to cover their mortgages, rent, car payments, utility bills, and even their groceries. Therefore, just as people took money out of the traditional markets, they ended up taking money out of the crypto markets as well.
Cryptocurrency Exchanges Have Recovered Quickly
Fortunately, for those who are looking for long-term gains, the crypto markets recovered quickly. Just as the traditional markets recovered during the summer, the crypto markets began to recover as well. At first, the markets were a bit slow to recover. Because there were many businesses that still had not opened up. Leaving people wondering where they were going to get more cash. Eventually, crypto markets started to pick up.
Furthermore, because interest rates are so low, the government is obviously still trying to pump money into the economy. This, combined with the fact that the economy is starting to recover, has provided people with more money they can use to make investments. This includes not only the traditional stock exchange options but cryptocurrency markets as well.
Public perception toward cryptocurrency is continuing to improve and more people are looking at this as a legitimate way to invest their money. Therefore, competition is only getting stiffer both for crypto investing and crypto mining. All of these factors have helped to drive the price of cryptocurrency up. There are lots of people who are now wondering if crypto values have reached as high as they will go.
Will These Exchanges Continue to Go Up in the Future?
Right now, these exchanges are trading at an all-time high. At the same time, so are the traditional stock markets. The only question is whether these markets will continue to go up. Because there is still some uncertainty regarding what the future is going to hold for cryptocurrency exchanges. Particularly as it pertains to regulation and the possibility of using crypto as a medium of exchange for goods and services. The markets continue to stay volatile. It will be interesting to see what happens next for people who are interested in getting more involved in cryptocurrency.