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Cryptocurrencies recovered after coronavirus crash

Photo: Shutterstock

The coronavirus crash, dubbed Black Thursday, hit cryptocurrency markets heavily in mid-March. The traditional market was also hit and marked as one of the worst crashes since the 1980s. The global pandemic has caused what the International Monetary Fund calls the biggest recession in 90 years – the worst since the Great Depression.

The market crash, which occurred around March 12, led most major cryptocurrencies to plummet. Bitcoin, for example, fell 50% in just one day.

But Bitcoin, as well as other major cryptocurrencies that have suffered the same setback, have recovered. In the past 24 hours, Bitcoin has reached its highest price since the coronavirus crash, $ 7,646. Its price remained (half) stable throughout the weekend, timidly suggesting that the market is returning to a bullish state.

The current price of Ethereum, the second largest cryptocurrency on the market, is $ 198, roughly the same price as before the crash. XRP is trading at $ 0.20, the same level as before the crisis.

Bitcoin Cash, the fifth largest cryptocurrency by market value, has also rebounded. Bitcoin’s hard fork, whose value closely follows Bitcoin’s ups and downs, fell to $ 147 on March 12 – one of the lowest prices since it emerged in 2017.

Since then, it has reached new highs, registering a brief $ 277 in early April and hovering above $ 240 last week. It is now at $ 244, after its halving, on April 8.

Bitcoin Cash’s archenemy, Bitcoin SV, also hit historic lows of $ 103 on March 16. Since then, the currency has been steadily increasing, reaching the current price of $ 197.

Litecoin dropped to $ 30 on black Thursday. Since then, it has recovered more than 50% – currently at a price of $ 45.

Why recovery? It may be because cryptocurrencies keep pace with global markets, which have improved markedly in recent weeks. And this may be due to massive efforts by governments and central banks, such as the Federal Reserve, which injected $ 5 trillion into the economy and cut interest rates to almost zero.

Goldman Sachs analysts wrote last week that “the Fed and Congress have prevented the prospect of a complete economic collapse. Investors were encouraged by the Fed’s ‘do what it takes’ approach. ”

* Translated and republished with authorization from Decrypt.co