While everyone was anticipating for the pandemic to be soon over after hitting Asia and Europe, the arrival of the second wave was a surprise. Although a second wave was anticipated, it wasn't expected to arrive so soon. The second wave had hit major parts of the world, such as the US, India and more.
The pandemic is still very uncertain. While everyone expects the pandemic to not return after severe measures, the mutating virus only paves the way for its expected return. The discovery of delta variants around some parts of the world has given an insight that the third wave would soon arrive. However, many countries are taking strict measures preventing international flights and more such aspects to curb the risk of a second wave.
Major Decline in GDP
Before the arrival of the second wave, there was a global decline of 6% in the GDP. According to the World Economic Outlook, this decline in GDP was one of the biggest significantly affected the market. The largest economies of the world were severely affected due to the uncertainty of the virus. This economic damage will, however, not go away anytime soon.
The virus has had a significant impact on consumer behaviour as well. This is, however, impacting the GDP decline too.
What is the impact of the second wave on cryptocurrencies?
Since the arrival of the first wave itself, bitcoin and other cryptocurrencies have become extremely volatile. Before the arrival of any energetic bullish period, these have been affected the most. The price adjustment has, however, been one of the biggest concerns for any visit website.
While the second wave mostly has had negative impacts, there are possibilities of some positive effects too. In the long run, the second wave can leave some positive outlook for bitcoin.
Bitcoin: A Store For Value?
Bitcoin has proven to be one of the most effective places for parking the value even in times of economic turmoil. One of the main reasons bitcoin is so reliable is that it can bounce back faster and better than fiat currencies or any other asset in the market.
If bitcoin is retrieved carefully, it can be very helpful. Even in times of the second wave, bitcoin did not crash much. Although the cryptocurrency market was volatile, it was effective. The value of bitcoin currently is pretty low. Hence, it is likely to recover and get the best value in the market in the coming times. Bitcoin will soon enter the bullish market, creating a new wave and new interest according to traders.
Initially, bitcoin grew at a stable rate. However, it took a bullish turn. Nonetheless, the global instability due to severe deaths in the pandemic did hurt the market.
Stimulus for Bitcoin:
There are chances of stimulus in bitcoin. However, it is necessary to look out for the different factors that can pave the way for stimulus. In the foreign markets, bitcoin has seen a massive rise. The distribution across the market for bitcoin is also indicating the growth of the same.
US consumers are more likely to benefit from bitcoin. Nonetheless, more opportunities may arrive in the same to get the benefit of an overall cycle. Given the current market scenario and the position of bitcoin in it, Bitcoin is likely to benefit the most from it. Bitcoin is expected to bounce back, thereby bringing in better market solutions.
The severe impact of the second wave on BTC:
The sudden arrival of the second wave brought huge volatility in the market. The value of one bitcoin currently is approximately $45000. Before the coronavirus hit the world, the value of bitcoin was around $54000.
The value of bitcoin had dropped significantly around March 2021. However, today it has recovered after a deadly first and second wave. Therefore, in the coming times, bitcoin will rise more, allowing traders to earn more. Bitcoin was severely impacted by the Covid-19 second wave. However, it is gradually recovering and can soon cross the $50,000 mark once again.