Crypto Market Update: Bitcoin and other major coins to suffer from coronavirus-induced crisis

  • The cryptocurrency industry will suffer from COVID-19 outbreak.
  • Top-3 coins are on recovery track, the upside momentum is gaining traction.

The cryptocurrency industry is not immune to the consequences of the economic crisis triggered by COVID-19. According to a new report published by to a new report from PricewaterhouseCoopers LLP, mainstream investors are wary of bringing money to the market in the time of uncertainty. It means that the capital inflow will continue to dry up in the nearest future. 

Crypto industry will face the consequences

The PwC experts pointed out that the mainstream adoption of the digital assets failed to materialize in 2019 when the industry emerged from the crypto winter. It is hard to imagine that the trend would change now that the global economy is gripped with uncertainty and fear.

The rise in the price of Bitcoin in Q2 and Q3 2019, and the associated interest in crypto assets did not yet materialize by way of increased new capital into the industry, the report said.

The fundraising in the crypto industry decreased by 40% in 2019 as compared to 2018, while merge and acquisitions activity dropped by 76% during the same time frame. Moreover,  according to Henri Arslanian from PwC, the cryptocurrency will not escape the negative consequences of the volatility and macroeconomic collapse triggered by the coronavirus outbreak.

The crypto industry is not immune to the global headwinds and the number and value of crypto fund-raising and M&A deals may be impacted in 2020, he added.

Top-3 coins overview

BTC/USD is changing hands at $7,400. The first digital coin has gained nearly 4% since this time on Monday. The next strong resistance is created by daily SMA50 at $7,500. A sustainable move above this level will allow for an extended recovery towards $8,000.

ETH/USD is one of the best-performing digital assets out of top-10. The coin has gained 13% in the recent 24 hours to trade at $173.30 at the time of writing. Decpite the retreat from the intraday high of $176.48, the coin retains positive bias with the next major focus on $200.00.

XRP/USD cleared the psychological barrier of $0.2000 and hit the intraday high of $0.2052. At the time of writing, the coin is consolidating gains, ready to resume the upside movement towards daily SMA100 at $0.2200.

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