Over the past few months, countries have struggled to fight and take measures against COVID-19, commonly known as the coronavirus. But, there’s no denying that it has left damages on most economies.
Right now, cryptocurrency prices are also affected. Though the market is no stranger to volatility, its past trajectory during the outbreak left many traders searching for answers.
At one point, Bitcoin went from around USD8,000 to USD4,000 then recovered to USD7,000 as of this writing. Predicting future patterns can be more challenging.
Reality Check: It’s More Volatile
The global shift induced by the pandemic outbreak makes it more challenging to predict the value of cryptocurrencies.
One example is when Bitcoin dropped by 37.5% last March 12th, it was the most volatile day in the history of the coin.
There is still some positivity amidst the ongoing situation, but, to benefit from it, traders need to look into several factors.
Here are some of the key considerations that traders can derive qualitative data from and incorporate in their strategy:
Halving
Despite the volatility, halving is the one that is most predictable.
When Bitcoin crashed in early 2019, it did not go lower than $3,000. Since data miners will not sell for a loss, then it means that they are maintaining the $3,000 as the floor. This time, according to FinanceMagnates, the floor will be at $6,000.
Economic Stimulus
One of the devastating effects of the COVID-19 is the surge of layoffs and unemployment rates.
During the pandemic, many governments have provided an economic stimulus to help ease the financial strain.
But, this might take some time before it can bring out a bullish trend in the cryptocurrency market Source: Swyftx.
An Influx of Organic Interests in Cryptocurrencies
During this time of the pandemic, people are looking for more valuable investments and many of them are looking to cryptocurrency. Crypto exchanges such as Bitfinex and Kraken have reported an influx of new users.
Emerging Platforms that Make Cryptocurrency Trading More Accessible
How to Find Better Trades in Volatile Times
Several experts have said that the crypto market volatility may become more unpredictable after the coronavirus outbreak. It may even be more difficult to find valuable trade opportunities!
But, with the help of crypto trading tools, traders would be able to monitor and analyze the trends. Knowing the pulse of the market, understanding the graphs, and sentiments in social media sites are useful in providing better insights about the direction of market trends.
This is not only applicable to experienced traders. People who want to start can use a beginner-friendly crypto trading tool such as CryptoCruisers. It is an online dashboard with indicators that show insights in a simple and understandable manner.
Crypto trading tools are more important than ever to track market prices to find valuable trades. These tools will help traders navigate the volatile situation induced by the corona outbreak.
