While traditional global economies have been devasted by the COVID-19 pandemic. Cryptocurrency, on the other hand, has apparently been more stable with many industries adopting blockchain payments over traditional mediums. So far, the latest data shows the demand for bitcoin is still on the rise. In fact, decentralised financial platforms such as Ethereum is reportedly the popular off-chain option for bitcoins. As of this writing, the value is listed at approximately $132 million.
Based on a report from CoinDesk, analysts observed a huge movement of bitcoins – valued close to $60 million – were funnelled into Ethereum. Moreover, an estimated 75 percent of that surge is from Wrapped Bitcoin. Medio Demarco, the co-founder of Delphi Digital and former Deutsche Bank associate, stated: "The recent trend shouldn't come as a surprise and will probably continue."
Meanwhile, it is projected that the May 2020 halving will push the market value of Bitcoin in its entirety to around $1 trillion. It remains speculation for now, but if it does come to pass, a BTC will be worth roughly $55,000. Due to the limited nature of the cryptocurrency, traders expect more growth as the supply decreases over time. It seems that the majority are in consensus that even in the long-term, the outlook is generally optimistic.
"In the BTC market, there is an increased institutional acceptance and awareness of the asset class which should bode well for long term price appreciation," said Bittrex Global COO and CFO Stephen Stonberg. "We've seen prominent organisations and figures such as Tudor, JPMorgan, Fidelity, which are publicly involved in the market, yet this is just the tip of the iceberg."
Furthermore, even renowned hedge fund manager Paul Tudor Jones believes a bullish turnout is in the making. Allegedly, up to three percent of his investments in May 2020 was on Bitcoin. Considering the volatility of traditional assets amid the health crisis, cryptocurrency is becoming a more reliable alternative for investors.
Due to the anticipated inflation brought about by the actions of the US Federal Reserve shortly after the SARS-CoV-2 outbreak, some analysts pointed out that unlike gold, it remains to be seen if bitcoin becomes a feasible inflation hedge, moving forward.