Since the founder of Twitter sold the first tweet as a non-fungible token (NFT), the buzz surrounding NFTs has grown even more. NFTs have quickly become one of the most popular cryptocurrency developments. However, many individuals are still unsure about what NFTs are and how they work.
NFT stands for non-fungible token in a nutshell. NFTs are crypto assets that are used on the blockchain to monitor the ownership of digital things. These items could be of any shape or size. It might be a video, image, or text, such as the autographed tweet from Twitter’s creator. There are various NFT marketplace development companies that offer the users to develop NFTs.
Artists, in other words, can produce NFTs and sell them on designated internet marketplaces or platforms. Those that are interested in purchasing non-fungible tokens can do so via the same online marketplace. NFT markets are essentially NFT token development companies where NFTs can be minted (produced), displayed, stored, and exchanged.
But just like all the other financial markets, the NFT marketplace and cryptocurrencies also did not remain unaffected by the Covid-19 pandemic and the lockdown.
Effect of Covid-19 and lockdown on the Cryptocurrency market
The link between Bitcoin and the stock market has risen since the Coronavirus pandemic. For example, on March 12th, the price of Bitcoin plummeted below $4,000 following a dramatic drop in the S&P Index in the United States. The reason for this was that there was a quick flight to liquidity, and many investors had margin calls in Equity that had to be met by selling other assets, such as Bitcoins, into cash, in order to satisfy those margin calls elsewhere. Though the price has again returned to roughly $7,000, Bitcoin prices are unlikely to surge again for some time. BTC is no exception to the fact that there is a lot of uncertainty about how things will turn out.
Though the price has again returned to roughly $7,000, Bitcoin prices are unlikely to surge again for some time. BTC is no exception to the fact that there is a lot of uncertainty about how things will turn out. Though the link between S&P and BTC appears to be fading a little. The issue is that, according to Bitmex statistics, the liquidity shortage on March 12th panicked several crypto investors and market makers. It is expected that prices will gradually climb again, especially after the halving, as some miners capitulate (inefficient miners will be forced to shut down), but it won’t be much because the world economy is one of the worst states it’s ever been in.
Future of Cryptocurrency market post the world economy recovers
Coronavirus has had a significant impact on the nascent cryptocurrency business. We were already dealing with a number of concerns, such as rules, liquidity, and scams, and this has only added to our list of concerns. However, while new businesses are developing a variety of intriguing goods, there is still a lot of mystery surrounding Bitcoin. Despite the fact that it can now be considered a mainstream asset, it has yet to be institutionalized. Governments all throughout the world must act quickly to regulate Bitcoin and make it easier to buy, sell, and hold it.
Until then, the crypto business will continue to struggle in the face of all the uncertainty, which has been exacerbated by the Corona case. Hopefully, a few years from now, the story will shift in a more positive direction.