Five Reasons why Cryptocurrencies are Set to Benefit from Market Downturn
The Covid-19 crisis has had a profound, and largely detrimental, impact on many areas of our lives. And one area where this definitely applies is the stock market. Shares tumbled worldwide after governments were forced to place entire populations under lockdown, and there seems very little prospect of an imminent bounce back.
So dramatic was the decline in share prices, it was reported on 24th February that the world’s 500 richest people had lost a combined $139 billion. And with a major economic recession considered inevitable, a promising haven for assets is something that many investors will be seeking in the weeks and months to come.
One possible destination for the money of investors could be cryptocurrencies, particularly based on recent market trends. So here are five reasons why the crypto niche could be the saviour of many investors over the next couple of years, and why using CryptoRocket could be hugely valuable.
1 – Commodities Trends
A mass sell-off of equities accelerated on 9th March, with billions being wiped off global markets. As stocks plummeted in value, several cryptocurrencies headed in the opposite direction at the beginning of April. And the market-leading Bitcoin set the trends, as has often been the case.
The start of the month saw Bitcoin climb above $7,000, and this resurgence continued into May, with Bitcoin exceeding $10,000 in value for some days. Ripple and Ethereum also made similar ascents during April, and the current sentiment for cryptocurrencies certainly appears to be bullish. Some investors trading on the CryptoRocket exchange have made truly impressive gains during this period.
2 – Commodities Trends
Historically, commodities have always been deemed safe havens for investors during times of crisis and downturns. The most obvious manifestation of this has been the gold market, which has often moved in an inverse fashion to the stock market. And both gold and silver have attracted those who are sceptical about market bubbles.
While the current situation doesn’t exactly represent a market bubble, it is a scenario in which we’re seeing a massive market correction over a short period of time; effectively the same as a bubble bursting. So, it’s only natural that investors are beginning to rely on commodities, and both gold and silver have surged in value.
Cryptocurrencies are increasingly being viewed as an alternative to gold and silver, or possibly companions in a diversified portfolio. CryptoRocket offers an extensive list of 34 different cryptocurrencies to choose from and this can provide a great opportunity for expanding your portfolio and making gains across a large area of the marketplace.
3 – Lack of Other Options
Finding safe investments is rarely easy. Some businesses have managed to thrive in lockdown conditions, but others have naturally had to essentially cease trading. The road ahead is far from certain, and we can expect to see many casualties as the depth of the economic carnage that follows Covid-19 becomes clear.
So there really aren’t as many options available for investors at this time. Certainly, the stock market has been decimated. This is why many people are putting money into assets such as cryptocurrencies, not least because these are unaffected by current market and economic conditions and restrictions. CryptoRocket offers flexibility like no other exchange platform and provides a Demo Account for people who are just entering crypto trading. Here, beginners can play with virtual funds in a real-time trading environment, learning through a risk-free experience.
4 – Home Options
While several countries have made tentative attempts to reboot their economies, this is going to take quite some time. There seems to be very little prospect of life fully returning to normal during 2020.
This is obviously going to have a profound impact on business, and an equally profound impact on investing. It is going to be extremely difficult for many publicly listed businesses to return to profitability in the current climate.
Only those investments that don’t require face-to-face contact on a mass scale will thrive. For example, Amazon and Netflix have performed particularly well during the lockdown. This is where CryptoRocket can be particularly useful, as it lists many stock options alongside crypto investments.
But this ‘stay-at-home’ category is precisely the niche that cryptocurrencies occupy. They were always intended to facilitate payment without needing physical contact. That might play very much in their favour right now.
5 – Previous Trends
Cryptos such as Bitcoin had fluctuated in value prior to the Covid-19 situation. But the whole niche was due to increase in value. Bitcoin had experienced a correction after peaking in 2017, and many experts believed that it was about to go into another seriously bullish phase. The coronavirus may have just accelerated this process. CryptoRocket will allow the BIT vault balance of HODLers to reflect a surge in value, while simultaneously protecting investments that are stored in fiat currency.
In an unprecedented time, such as this, many investors are forced to think outside the box. Their usual approaches simply won’t work during this crisis. It’s hardly surprising that cryptos are making a serious resurgence, and we can expect that process to continue, even as the world slowly recovers from the Covid-19 pandemic.
And CryptoRocket, with its 64 listed stocks, and vast array of crypto investments available, is the ideal platform to engage with and get the most out of trading.