The number of infected people is growing

The number of detected cases of coronavirus infection in the world exceeded 98 million.

Experts attribute sharp fluctuations in the exchange rate to the increased outflow of money from the cryptocurrency market. In attempts to fix profits, investors are actively selling electronic money that has risen in price in recent months, experts say. Against this background, analysts do not exclude new collapses in the value of Bitcoin in the near future, but in the long run they predict an increase in the rate of electronic coin.

1. The cost of bitcoin has steadily increased since mid-October 2020.

In addition, in 2020, against the backdrop of the coronavirus pandemic and the fall of the global economy, many investors actively invested in cryptocurrencies for more reliable savings of their funds.

• Many Asian traders now sell cryptocurrency;
  • The second reason is the uncertainty surrounding political power in the USA;
    • Big traders want to get e-money sold and then buy it back;
    • Any global changes in the world have an impact on cryptocurrency;
    • Traders’ interest in bitcoin is constantly growing;
  • Shares of some companies are tied to the value of the electronic coin.

1.1 Total cryptocurrency market capitalization.

Moreover, in an attempt to make money on cryptocurrencies, some large investors deliberately make forecasts about a further drop in the market. Thus, they want to achieve new sales of electronic coins, and later buy a digital asset at a favorable price.

Now we need to take a more thorough look at how to stimulate the use of bitcoins for legitimate activities and stop their use for malicious and illegal actions.

2. Cryptocurrency fluctuation.

In 2020, several events occurred at once, shocking the global economy. At first, cryptocurrencies showed the property of risk assets, showing a high correlation with the American stock market. Then they began to show a similar dynamics with gold, which grew in price amid geopolitical instability.

There is also a depreciation of the dollar due to an increase in its emission. Against this background, Bitcoin looks more attractive.

Stimulating measures taken by countries of the world to counter the effects of the coronavirus pandemic on economies remain a positive factor for bitcoin and other cryptocurrencies.