How the Coronavirus Pandemic Is Impacting the Price of Bitcoin

Coronavirus pandemic has messed up the plans of many people. However, this time, we are not going to talk about health issues. We will talk about the influence the pandemic has on the entire business world.

Tourism is one of the business fields that suffered the most. Many countries around the globe closed their borders for foreign travelers. However, the touristic field is only one of many that will need to be creative enough to solve the problems they have. Yet, are things the same for all the industries that exist in the world?

The good news for some people is no, that’s not always the case. That especially counts when we talk about the crypto industry. Bitcoin, the most popular crypto in the world, managed to survive. More precisely, it managed to improve its value for a short period.


People Changed Their Investments

Predicting what will happen by the end of this year is almost impossible. No one exactly knows when the pandemic will end. Because of that, a big amount of uncertainty is noticeable in all economical fields. That is the reason why almost every industry seems risky for investing.

On the other hand, the pandemic has had different effects on the price of one BTC. Before the pandemic started, the value of one BTC was around 9800 dollars. During the pandemic, there were no significant changes in the price.

In August 2024, the price of Bitcoin was nearly 12 thousand dollars. Yet, people that are familiar with the crypto world know one thing. They wait for different signals that will tell them to prepare for some further changes. Some of them will manage to predict those changes alone. On the other hand, others would use the crypto trading apps and ensure additional protection in that way. That is also an option, and if you would like to check it out, you can click here. There you will manage to see how the entire process works.

Anyway, these signals are not the only ones that helped people prepare for further changes. Investors and traders could also hear different rumors associated with Bitcoin. They were all saying that 2024 is going to be a revolutionary year for that digital currency. Because of that, they all decided to be patient and wait for the right moment to come.

Source: Medium

The Right Moment Appeared on January 1st, 2024

On December 13, 2024, things started to change in the Bitcoin world. The price of Bitcoin on that day was around 19500 dollars. However, the price-improvement trends remained. Because of that, the price of the BTC on the first day of this year was $29388.

We can all say that the impact of the pandemic on the price of Bitcoin is positive. While you are reading this article, the price of one BTC is 45685 dollars. You can calculate on your own the difference of the price for only one year.

Why Has Price of Bitcoin Jumped during Pandemic

The reason why the price of Bitcoin is jumping is simple. The investors and all participants in the crypto world are responsible for that. It is not a secret that pandemic made people more skeptical and unsure. They are not willing to invest in industries that are full of uncertainty. That is the reason why the demand for Bitcoin has jumped.

However, that doesn’t mean the popularity growth is the only reason why something like that happened. There are a couple of factors more that supported the rise of Bitcoin price.

Source: Blackwell Global

Unstable Dollar

Pandemic harmed the American economy as well as the national currency. It is not a secret that many people in the USA lost their jobs because of the pandemic. However, the money supply has increased during the pandemic. That is the reason why the dollar experienced lower purchasing power.

Unfortunately, the stimulus spending also had a negative impact on the strategies of many investors. They do not feel comfortable investing in the dollar because of the feat of greater inflation rates.

However, here comes the moment when Bitcoin becomes an amazing alternative. As you probably know, in Bitcoin’s code, it is already determined how many BTCs can exist. That number won’t change which makes the most popular digital currency an attractive option for investing. When you look closer, fixed supply is probably one of the biggest benefits of this cryptocurrency.

Many Companies Approve Crypto-Based Payment

We previously said one essential thing for all the business owners. They need to get out of the box if they want to survive in today’s business world. More precisely, they need to show creativity to pass all the obstacles pandemic brought.

Many businesses started to follow the latest trends in the business world. That is the reason why many of them decided to accept crypto-based payments. A good example of that is online casinos. In 2024, there will probably be many of them where people can make crypto deposits.

In other words, cryptocurrencies are becoming available on every corner. That especially counts when we talk about Bitcoin. The decisions that businesses made increased the demand for the currency. Logically, that also supported the price growth of the most popular digital currency in the world.

Source: Nikkei Asia

Political and Ideological Neutrality

We won’t spend a lot of words on the political happenings around the world. However, people probably know what we are talking about. Different political changes also had a direct impact on the power of many national currencies.

On the other hand, these changes do not influence the price of digital currencies at all. They are all ideologically and politically neutral.

That is the reason why people feel more confident to invest in Bitcoin. They are not afraid of the potential negative happenings in different parts of the world. As we said, the entire world is facing a high level of uncertainty. No one knows when everything will end, and when people will the normal life will hack. That is the reason why they are looking for a safe option. It seems that Bitcoin is the best option they currently have.