The worldwide cryptocurrency market size is expected to reach USD 1,758.0 million by 2027, demonstrating a CAGR of 11.2% during the projected time frame. Cryptocurrency is a system of virtual currency exchange that is intended to reduce financial intermediaries. The impacts of the COVID-19 pandemic have been felt all around the globe.
Like every other market, the cryptocurrency market has also experienced a decline due to the COVID-19 pandemic. The level of stability in the digital currency landscape has significantly lessened. The market is luring investments despite the ambiguity occurring in the digital currency industry.
Furthermore, digital currencies like Ethereum, Bitcoin, etc., have watched inflation in prices despite the pandemic. Firms across numerous nations have halted their mining operations due to the pandemic. Some nations like Russia have postponed the implementation of cryptocurrency laws due to the pandemic.
The outbreak of COVID-19 has adversely affected the global economy. The regression in the stock market has created fears for bitcoins. For example, on 12 March 2021, the price of Bitcoin dropped below USD 4,000 after a sharp drop in the S&P Index in the U.S. The market collapse has prompted an increase in investment capital by blockchain firms to offset the losses.
The increasing pattern of cryptocurrency has triggered the acceptance of automated coins like Bitcoins, Litecoins, Ethers, and the sky is the limit from there. The simple and flexible conditional strategy provided by the cryptographic money has inspired the Central Bank Digital Currency (CBDC) movement arrangements across the globe.