It seems that the Fed‘s announcement of drastic expansion of economic rescue was enough to make crypto markets feel secure
Market capitalization of global crypto market grew up almost $14 billion during last 24 hours. The digital currency now involves more than $180 billion, a value bit lower that GDP of the Czech Republic. The growth was supported mainly by Bitcoin.
Yet, not so long ago – in first half of March, we experienced crypto market massacre, when value of its market capitalization dropped almost in half to around $90 billion. Everything’s forgotten already and digital money return to its deserved place. The rally was very likely caused by Fed’s announcement, in which the American central bank had stated it was ready to support the U.S economy as never before.
According to analysts, crypto currencies can benefit from the current pandemic crisis. In comparison to regular money, crypto currencies have many advantages. For example, crypto mining is given in advance, which protects the value from inflation. Moreover, bitcoin halving should take place in about two months and will lead to further mining slowdown. Given the current high demand, even higher growth in market capitalization of virtual currencies may be expected.