Crypto Altcoin revival looks implausible in COVID-19 market rout

Crypto Altcoin revival looks implausible in COVID market rout

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The much-prophecized crypto altcoin revival isn’t happening anytime soon. In 2018, most cryptocurrencies suffered a huge blow, and now trade significantly lower than their peak prices. Investors believed that after two years of a persistent bear market, it was time for a crypto altcoin revival to materialize. However, the current COVID-19 market rout has dashed all such hopes.

Altcoins are battered, just like other digital assets. The market seems exhausted with extensive selling, yet altcoins have shown no sign of price recovery in the past two days. Bitcoin price, too, has not moved in positive territory, and the industry is staring at a deeper pullback. Luckily, BTC has been able to hold the $6,000 mark – something most altcoins can only dream of at this juncture.

Crypto altcoin revival looks bleak as price fall continues

The current COVID-19 pandemic has ravaged the markets with no end in sight. The crypto realm was already reeling under immense pressure before this global economic upheaval. While BTC revival looks plausible, altcoins are only going down the slope. The appetite for altcoins diminished as people took the flight to safety. High-risk virtual assets are not preferred anymore.

The crypto market lost tens of billions of dollars in valuation within a matter of days. Since March 7, the crypto market valuation decreased by $89 billion as the market collapsed from $264 billion to the current $175 billion. Stablecoins performed relatively better than altcoins.

Bitcoin does have suitable technical support around the $6,000 mark. On the other hand, the FTX Altcoin index perpetual futures saw a steep 56 percent drop. The altcoin market didn’t witness such a dramatic drop even in the 2017 rout. The current COVID-19 pandemic looks set to continue well into the third quarter. Thus, any hopes regarding the crypto altcoin revival should be taken with a pinch of salt.

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Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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