Coronavirus Hits Bitcoin Hard, Causing Economic Slowdown In India

The concept of cryptocurrency did not become popular overnight in India. In the beginning, it faced many hurdles and was misunderstood to be easy access for illegal activities like smuggling and other notorious purposes. But later on, it got accepted in India, when recently the ban was lifted by Supreme Court. It proved to be a big moment for the startups in India, who take it in a positive outlook to fuel their startup business growth. Currently, the global cryptocurrency market is facing an economic slowdown in the world. And it is alldue to the vast spreading of coronavirus pandemic.

Bitcoin, which is considered to be the preferred digital currency for trading globally, got dipped to $3,650. However, it bounced back by rising to $5,200. The beginning of the year 2020 didn’t prove favourable for the leading cryptocurrency as it saw a drop of 30 per cent. According to a report, the cryptocurrency market suffered a loss of $50 billion in the current year. Apart from Bitcoin, the major altcoins like Ripple and Ethereum also bite the dust. The poor performance of these major digital currencies became the reason for the overall collapse of the crypto market.

Now, let us discuss Coronavirus, which have become one of the major reasons for the economic slowdown in India 2020.

Coronavirus: The Reason For Economic Slowdown In India

The latest coronavirus pandemic has caused big havoc for the economic slowdown in India. Let us know about this disease. Coronavirus (Covid-19) is an amalgamation of multiple viruses. It creates a common cold for other respiratory health problems. This epidemic disease is said to have been introduced in 2019. Initially, no reports were stating its presence in humans. The symptoms of the coronavirus are known through difficulty in breathing, coughing, cold and fever. This disease can prove even fatal as it can cause kidney failure, pneumonia and even death.

Though there can be many causes for the economic slowdown, including slow job creations and rural households facing financial crunch etc., currently, the one big factor that has affected the economic market globally is Coronavirus disease. The stock markets like NSE and BSE too can’t remain unaffected by it, leading their drastic fall.

Coronavirus has not only affected India and other parts of the world but also it has shrunk China’s economic market in the first quarter in this current year (2020). In comparison to 2019, the current year 2020 saw a double-digit drop in retail sales, industrial production and investment in China. According to an economist from Peking University, people must be convinced to spend money again, or else the U.S., East Asia and Europe may have to face the consequences of a demand shock, which can drive the world to disaster.

Conclusion

Coronavirus has seriously become a major reason for the economic slowdown in India. According to some financial experts, it might be possible to see Bitcoin falling at low level to $1,000, which has never happened before in previous years. Not sure whether how much time will it take to let economic condition coming back on track, but till the time the coronavirus is there, we may see some more adverse reports of the market crackdown. Though there can be other factors involved in the economic slowdown of India as well as other countries. But looking at the current situation, Coronavirus has become a big hurdle for cryptocurrencies as well as stock markets.

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