The cryptocurrency market is much more vibrant thanks to Covid-19

Tram Ho

The crypto market appears to benefit from the capital outflows from the traditional financial market during the Covid-19 pandemic, at least in the short term. While traditional financial markets are in turmoil, crypto exchange Binance estimates its earnings of $ 262.5 million in the first quarter of 2020.

Binance is the world’s largest cryptocurrency exchange by trading volume. Binance’s above-mentioned first quarter income source also mainly comes from transaction fees. Besides, according to the spokesperson of this exchange, there was a 47.4% increase in the number of new organizations investing in the first quarter compared to the previous quarter.

Thị trường tiền mật mã sôi động hơn hẳn nhờ dịch Covid-19 - Ảnh 1.

The price of bitcoin, the most popular cryptocurrency in the world, dropped below $ 5,000 in mid-March. However, bitcoin then sometimes exceeded the price of $ 10,000 in early June, recording an increase of more than 100. % from bottom to top. Currently, the price of bitcoin is about $ 9,200, significantly higher than the level of $ 7,200 on the first day of 2020.

Binance founder and CEO Zhao Changbang shared, “I think Covid-19 could be a positive overall impact on cryptocurrencies. Covid-19 has caused a lot of insecurity in the traditional financial market, pushing many people into the crypto market. ”

Anyway, this young Canadian-Canadian CEO said that before the crypto market really grows, there will always be a correlation between the two markets. “When people are financially hurt in one market, they will get money from other markets, even by liquidating their crypto investments,” explained Zhao Changbang.

As the CEO envisions, if the financial market were ships, the stock market would be as big as Titanic, while the crypto market would be just like a small sailboat.

According to SCMP

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Source : Genk