The cryptocurrency market has been through an unexpected boom throughout the past few months, despite the coronavirus cases taking back with an increasing pace around the globe. Since the start of the year, the price of both ETH and BTC, the most popular cryptocurrencies, went up 200% and 65% correspondingly, which also pushed the network transaction fees utterly close to the all-time high. The market cap of both cryptocurrencies has reached sky heights in 2020, and the number of active Bitcoin and Ethereum addresses became the second-highest after the price explosion of December 2017.
Cryptocurrency as a Safe Haven
The explanation behind this outstanding price-performance is hidden in a number of defining factors simultaneously. One is an ever-growing concern surrounding COVID-19 and its macroeconomic effect on the global economy, which gives a benefit of a doubt whether the full recovery will finally take place before the vaccine is explored and distributed among the public. Taking into account the absence of definitive steps thus far, this may provide an explanation of why a large fraction of the population moved their assets into crypto instead of conventional fiat. Also, the research by JPMorgan highlights that cryptocurrencies share a much broader appeal among millennials, who prefer to store their assets in crypto for the forthcoming term of an increasingly volatile global economy, as opposed to baby boomers, who show a clear inclination towards purchasing gold.
Second, the answer behind the price surge of digital assets lies in a supply of tokens. With cryptocurrencies like bitcoin, which for the reason of its scarcity deserved a reference of ‘digital gold’, has already headed the list of cryptoassets whose price is pumping up due to its very limited nature of tokens in circulation – it was curbed just at 21 million. Even more stimulated by a friendly regulatory stance of authorities, including the most recent approval of a cryptocurrency bill in Russia supporting the companies’ release of tokens and naming cryptocurrency as taxable property, Bitcoin is now having its wheels geared towards an even broader global adoption.
Stablecoins are facing a rising wave of interest, too. As Tether is mostly used by many traders as intermediary storage during short breaks between trades, its compound circulation within the network has reached 10.3 billion. Besides, more and more world-renowned organizations nurture an interest in issuing their tokens. One of the most notable examples of it is Goldman Sachs, which only a few months
ago criticized Bitcoin for its speculative nature, but later made a statement about a possible release of the bank’s own token. After a long round of talks, JPM Coin is too predicted to come into existence soon.
Crypto Market Turns Into A Pool Of Massive Gains For Traders
Seeing the rise in popularity of crypto and cryptonomics, this trend already gave a push for the new companies to accelerate their position on the crypto market. Since some of the exchanges already firmly established themselves in this environment, it is not uncommon for new companies to join the circle to promote the features of advanced functionality. Especially, this comes pertinent with regard to margin trading, already highly successfully replicated after a Forex market. Being quite of a novel solution on the domain of crypto, it is currently incorporated by not more than 30 trading platforms, out of which only Bitmex, Bybit, FTX, Bitfinex and Deribit are close enough to the idea of a full-fledged margin trading terminal.
The most relevant addition to this list is WhiteBIT – the exchange which made a focus on the trade of high liquidity currency pairs, such as Euro (EUR), Russian Ruble (RUB), Turkish Lira (TL) and Ukrainian Hryvnia (UAH) against highest-trending cryptocurrency assets. What makes it particularly distinguished is the leverage of up to x25, which is sourced from the pool of more than 180,000 participants. Making the first public appearance in 2018, the platform is already firmly enrooted into the market and proved itself as a reliable mechanism resistant to hacker attacks, primarily due to its feature of a cold wallet.
All in all, as the cryptocurrency market grows, it transforms into a new edge for financial and digital technological development. Most likely, it will keep on progressing for the future until it gradually comes to the same level as the Forex market and eventually overthrows it. That’s why crypto trading platforms may become a tasty morsel for traders looking to scale up already now.
Source: The Explosion of Bitcoin Price Defines Crypto As A Source Of Higher Gains Amidst Global Market Uncertainty