Our lifestyle has changed during the pandemic period, and we have faced a huge change in the financial and economical sectors as well. Similarly, the crypto market has faced some changes during the pandemic. For example, Bitcoin was purchased at $7,300 when the pandemic erupted, and now the price of the same Bitcoin is around $46,800. So, the price of Bitcoin has risen up to 640%. Along with Bitcoin, similar changes are seen in other cryptocurrencies, and the price of Ether has faced a huge pick during this pandemic.
Why are cryptocurrencies or bitcoin prices increased in pandemic?
According to the reliable sources, cryptocurrencies like Bitcoin can be purchased from anywhere across the world. During the pandemic, people can use bitcoin for their online transactions, and it is treated as the best alternative to fiat money. It is true that cryptocurrencies are banned in some countries, but investment in Bitcoin is simple, easy, and secure.
However, investors also fear that political parties and central banks can ban crypto during this pandemic in their states. The reason behind that is they know that major investors will switch to cryptocurrencies as it is not controlled by any government or bank. During this pandemic, a rumour was circulated that sophisticated investors are trying to manipulate the price of cryptocurrencies, and they are trying to hold a huge stock of Bitcoin from unsophisticated investors. But it can be done if an investor is influenced by others. For example, if you buy Bitcoin just because your friends are investing their amount in Bitcoin to keep the same during pandemic, you have a pretty good chance of losing your invested amount.
Apart from that, crypto is also suspicious and it can be the first choice for criminals, especially they can use Bitcoin for their illegal transactions during this pandemic period. As a result, investors thought that investing in Crypto including Bitcoin can expose them and they will be charged with some criminal and money laundering charges. So, it is better to avoid such risky investments.
But these are rumours, and the price of bitcoin has raised during this pandemic due to its safe and secure investment policy. Pandemic is almost over, and vaccines and medical treatment has improved a lot, so the price of the Bitcoin will be expected to perform better. In short, there has been a major change in the overall market exchange rates and in the value of cryptocurrency.
The effect of Omicron: Is it posing some risk for cryptocurrency investment?
Along with the surge in the pandemic, and the crisis in the global financial market incurred thereafter, there is also a possibility that Omicron might also affect the market of cryptocurrency. According to recent news published by Forbes regarding the Omicron risk for traders and businessmen dealing with cryptocurrency, there has been no significant negative effect of Omicron regarding the surge in the value of cryptocurrency. It is quite similar to some extent in the case of the Coronavirus also, and if we compare the two cases from a global perspective, it can be seen that there is a directly proportional relationship between the pandemic and the cryptocurrency sector for a long time. There is a constant view of the market fluidity in terms of economic returns and small or large-scale investments.
The Commodity Futures Trading Commission has marked specific portions of a shifting trend in terms of bitcoin investment and the Omicron risk. The week that ended on November 23 marked a definite threefold increase in terms of knowing bitcoin futures, and more new contracts were supposed to have emerged as compared to the developments of the previous week. Along with that, the COT report also showed how there was a giant 200% leap in the development of short bitcoin contracts from 887 to almost 2663. If we look at the monetary equivalent in terms of the rise, we find that there is a rise of $511 million.
So, it is safe to invest in Bitcoin during Pandemic. However, you need to use the best platform to buy or sell your Bitcoins. You can select TOP bitcoin bots for a secure and user-friendly trading app to buy Bitcoin. Bitcoin and other cryptocurrencies should occupy 1-10% of your investment portfolio. You should not take a risk by investing all your assets in Bitcoin or any other cryptocurrency, as these digital currencies are volatile in nature.