The outbreak of Covid-19 continues to impact every aspect of people’s lives. It has hit hard and undermined the world economy in the last few months, fearing not only lives but global businesses and the world’s financial system as well. As the pandemic impacts across diverse industries, crypto is no exception. Amid the economic crisis, the value of Bitcoin surged for the past month. This surge is inevitable as China, the leading country in the cryptocurrency transactions had disrupted workflow due to the major outbreak in the country.

Since large businesses across the global economy have been put on a standstill, the crypto industry was well prepared to deal with the pandemic. Crypto companies have been rapidly adapting to these changes thanks to a fully digital and decentralized way of doing business. However, the impact of Covid-19 can be seen on major crypto events scheduled for the first half of 2020 were canceled or postponed.

Despite this, the outbreak urged market crash had a heavy impact on several crypto businesses that rely on the prices of crypto and now found themselves in survival mode. Conversely, crypto exchanges have been gaining profits from the spike in buoyancy and trading volumes. Besides, the significant drop in the Bitcoin price in mid-March doesn’t seem to have dampened the crypto community’s desire to trade. According to data, the token’s daily trading volume in January was around US$20 billion, which was up to US$5 billion from three months earlier.

However, while Bitcoin declined on March 12, its daily trading volume has barely fallen below US$30 billion. The same pattern can also be seen with the Tether (USDT) stablecoin, which now exceeds BTC by trading volume.

Bitcoin Still Stands in the Time of Crisis

The stock markets across the world saw a major decline due to the pandemic. For instance, Europe has experienced stocks fall to their lowest levels since 2012 as the Covid-19 continued to wreck share prices. Considering reports, the pan-European Stoxx 600 index was down 2.7 percent, while Germany’s Dax was 2.7 percent lower and Italy’s FTSE Mib had dipped 1.6 percent.

On the other hand, the Covid-19 pandemic has prompted a considerable surge in the use of fintech apps by 72 percent in Europe in the last few weeks as people globally try adapting to new working conditions, a recent research from the deVere Group noted. While Bitcoin is still in its infancy, its price is unpredictable for the future.

It is predicted that the Bitcoin price will reach a peak due to the upcoming halving event, and the level of US$50,000 could be exceeded in 2020 alone. Simultaneously, researchers at the Kraken crypto exchange platform said the Bitcoin price could reach US$350,000 by 2045, following the US$70 trillion great wealth transfer to millennials.

Amid the crisis, the use of blockchain has been paving several ways wherein it can serve as an effective tool to fight against the outbreak. The technology is used to assist in tracking donations given by individuals; make the insurance claims easier; and help in tracking the supply chain of medical materials. Most healthcare systems use blockchain to track the proximity of the virus to ensure error free information being shared.