- Crypto prices rise despite the effect of Coronavirus on economies
- Stock prices of traditional financial institutions slumps
Crypto prices earlier this year recorded a considerable drop when the world economy raged from the novel pandemic’s effect, Coronavirus, that threw both the digital and traditional financial institutions into a whirlwind.
However, as different countries’ economies are beginning to recover from the earlier decline steadily, crypto prices appear to have dusted off the rust and have started to climb again. At the same time, the stock of traditional financial institutions like banks is still performing low.
Bloomberg’s Jon Erlichman compared these traditional institutions’ stock performances against digital fintech companies and cryptocurrencies like bitcoin and ethereum in a tweet. And what one can deduce from it is that fintech companies and crypto prices have experienced massive growth and have comfortably outperformed all traditional financial institutions compared to them.
These traditional financial institutions experienced a massive slump in their stock prices during the Coronavirus imposed lockdown as some of them lost as high as 50% of their stock prices in a matter of days.
However, it should be noted that their stock prices have begun to rise again, but it pales significantly when compared to other digital institutions or crypto prices.
Crypto Prices marches on, alongside other digital fintech companies
While the traditional financial institutions have been struggling to pick up from the price slump experienced due to the Coronavirus, digital fintech companies like Square and PayPal have seen their stock rise after experiencing the same fall in stock prices.
The stock price for both companies has risen over 90%, and it still appears to be going strong.
Also, crypto prices of assets like Ethereum and Bitcoin experienced the slump, but they have also picked up and are both on the rise.
Presently, Bitcoin is selling at over $13,000, which is a yearly high. Ethereum, on the other hand, has also seen growth in usage since it is depended upon by most DeFi tokens.