Analysing Bitcoin’s revival: CoinMarketCap notes cautious optimism amid Covid-19 – as halving arrives


The latest quarter has been tumultuous, to say the least across all global economies – but although Bitcoin’s performance inevitably dropped, it still outperformed global equity indexes according to the latest report by CoinMarketCap.

CoinMarketCap argued in its Q1 evaluation of the crypto market and consumer patterns that crypto markets have ‘recovered a large portion’ of their March losses during the Covid-19 pandemic, but warns there was ‘still some way to go’ before they recover entirely.

Bitcoin reached a high of $10,500 and a total market cap of $305 billion in February before touching a low of $3,900 on March 12, dropping 43%. Its year-to-date performance – based on January 2 to March 31 – saw a drop in the price of 10.52%. This was better than the MSCI World Index, which fell 20.65% over the quarter, and the S&P 500 Index (-19.42%).

There has been a slow revival since March 31, whenever the price of Bitcoin was $6,445, with many seeing it as a relative haven during the crisis. The currency again hit $10,000, in line with optimistic remarks made by the hedge fund manager Paul Tudor Jones, claiming it was ‘perfect speculation.’

The current Bitcoin has been halved this week, with the incentive for unlocking a new block reduced from 12.5 new coins to 6.25. Within the industry, the festival has its supporters and detractors about once every four years. Bitcoin supporters see it as a protection-part of ensuring that there will still be just 21 million Bitcoins – while others see it as a possible disincentive for miners. Stephen Innes of AXI Corp has told the BBC that miners are likely to turn to more lucrative cryptocurrencies.

Some crypto assets, most notably Ethereum (+3.29%), Bitcoin Cash (BCH, +10.48%), and Bitcoin SV (BSV, +76%), saw a strong quarter within the crypto market itself, with market caps of $14.74bn, $4.11bn and $3.08bn at quarter-end respectively. Because of these gains, BSV and BCH both reside on CoinMarketCap in the top 10 most viewed crypto assets. With Ethereum nudging XRP into second place, Bitcoin inevitably stays on top. Litecoin climbed into this quarter’s top 10, too.

Among other significant results of the study was that there had been a substantial rise in the number of female Bitcoin users. There was a 42.34 percent quarterly rise worldwide, driven by Greece, Romania, Colombia, and Venezuela. Abased Bitcoin exchange, CoinCorner, said in a note that it had seen a similar spike, with women accounting for more than one in five (22.8%) of all Q1 sign-ups.

With the most cautious of optimism, CoinMarketCap concluded its report, noting that while the most significant speculation regarding ideas such as ICOs has almost certainly died off, the strong figures elsewhere indicate growth prospects do not rely solely on Bitcoin.

“From the 2017 boom in initial coin offerings to exchange -led fundraising in initial exchange offerings, the feasibility of capital raising via the issuance of tokens is now at a trough,” the firm said. “Having said that, the blockchain revolution has a lot of untapped potentials.”


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