(Financial News) A sharp drop in the price of Bitcoin against the backdrop of the global panic due to COVID-19 has reduced activity in the Darknet Markets.

Darknet Markets are part of the so-called Dark Web. The Dark Web is a subset of the Deep Web. The Deep Web makes up the part of the internet that is not indexed by Google or other search engines. Experts say that this by far the biggest part of the internet.

The Deep Web is 500 times bigger than the WWW

According to CNBC the Deep Web is approximately 500 times bigger than the web we access via Google and a standard web browser.

Darknet Markets are typically accessible only via browsers such as The Onion Router (TOR) which utilize encrypted public networks that obscure internet traffic.

Sharp Drop in Darknet Markets Transactions

According to analytics firm Chainalysis’ new report on bitcoin transactions, there was a sharp drop in activity on the Darknet Markets since the coronavirus outbreak started spreading the globe.

According to researchers, the fall in the price of BTC had a different effect on various market segments, including Darknet Markets, merchant services and gambling.

Merchant services were relatively resistant to price fluctuations. According to analysts, the volume of purchases in this segment did not fall as significantly as some predicted.

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The company further noted that the correlation between the price of bitcoin and the activity of Darknet Markets has fallen drastically since the outbreak of COVID-19.

Experts don’t correlate this drop in activity to the drop in the price of Bitcoin, as historically speaking Darknet Markets have been largely immune to price fluctuations in Bitcoin. Instead experts are saying that this could be due to the fact that there is a large disruption in supply chains globally, and the Darknet Markets are no different than other markets disrupted due to the COVID-19 outbreak.

Gambling has been hit pretty hard since the beginning of the onslaught of COVID-19 on the world. But experts say it probably does not correlate to the price of BTC.

Gambling has been behaving counter-intuitively since the onset of the global lockdown on over half of the world’s population. One would think that if you lock a bunch of people inside their homes, online gambling would be a booming business.

However with the impending economic crisis, many would-be-gamblers are thinking twice about parting with their cash.

In the field of gambling, the flow of funds in cryptocurrency has significantly decreased. Also, there is no significant correlation with the price of bitcoin Chainalysis

Earlier, Chainalysis experts calculated that, against the backdrop of the March market crash, 5% of all available bitcoins were dumped.