Developments Affecting the Crypto Money Market as the Market Prices COVID 19

The COVID-19 pandemic, which has occurred worldwide since approximately January 2020, has had an impact on the economies of countries and financial markets, and many countries have had to take economic measures. The events that occurred and the measures taken created volatility in the financial markets, and cash flows shifted to different financial instruments from time to time. Although there were sharp declines in crypto coins in this period when the reflections of COVID-19 on the market had an effect on pricing, both crypto coins and blockchain technology showed their preferability. In this process, many blockchain projects have been implemented and countries have accelerated the process to issue their own digital currencies. In particular, the low cost, speed, global and protected nature of crypto coins has made it a strong option over the past period of time and has created a driving force for the implementation of digital coins. 

The bitcoin halving process, which is expected to occur after about 17 days, has had an impact on both miners, network power and retail investors, as well as the upward movement in pricing as a result of successive positive news from China. In particular, China’s acceleration of the digital yuan decision, creating a pilot region, sitting at the table to reach an agreement with chain brands and giving ethereum ownership status are among the main developments. In the days when we see the reflection of international relations, the US has also announced the digital dollar project, so the idea of the digital age has been established in the investor. In addition to the digital currencies in question, some country rights have turned to crypto money to escape inflation. According to research, Argentina’s bitcoin volume has grown 10 times, and individuals have started to see
as a haven against the peso, which is losing value day by day. Thus, in these days when the positive perception is formed, the investor has turned to crypto coins. In the light of all these developments, during the period of the halving, record expansion was seen in the portfolios of hodl investors and bitcoin holders bought the expectation at a record level. Ahead of the halving, bitcoin’s mining difficulty is climbing to an all-time high. According to research, this challenge is expected to increase in the next two weeks. 

The developments in the pandemic, which had negative reflections at the beginning, created a forced direction shift in the investor and positive reactions were seen after the sharp decline in crypto coins. Expanding the scope of crypto coins and blockchain technology, many issues can be overcome as a technological transformation has come across countries and investors have warmed to this new idea. So much so that even individuals or institutions that were not in the market before have started to consider this transformation as an option. In the coming period, it is expected that the positive reflections will continue and that the blockchain technology will play a serious role in human life with crypto coins.