BitMEX, the world’s second-largest crypto exchange by daily trading volume as a result of press time, believes that in the midst of the ongoing global coronavirus crash, Bitcoin faces its greatest challenge and opportunity to demonstrate its potential during the global financial crisis.
Coronavirus Financial Crisis Seen Biggest Opportunity for Bitcoin
BitMEX Research, the research arm of BitMEX has published an analysis of the continuing impact of the COVID-19 pandemic on financial markets. According to blog post by BitMEX Research, titled “Inflation Is Coming,” outlines the financial market crash of coronavirus as the biggest economic turmoil since the financial crisis of 2008. BitMEX also compared the downturn with the Dotcom bubble of 2000 and the Asian crisis of 1997, in the same analysis.
Pointing out that inflation is likely to reveal “one clear winner” under a new global financial regime, BitMEX Research stressed that Bitcoin, created as the first ever crypto-currency in 2009, now has its biggest chance of proving its worth.
BitMEX Research wrote:
“In our view, in this changed economic regime, where the economy and financial markets are set loose, with no significant anchor at all, not even inflation targeting, it could be the biggest opportunity Bitcoin has seen, in its short lifetime.”
Two DDoS Attacks Caused Major Sell-off
On the same day as the BitMEX post, another blog post attempted to explain why last week, Bitcoin experienced a major sell-off, plunging to as low as $3,600. On March 13, BitMEX blamed two DDoS attacks for crashing its platform.
While the famous billionaire investor and Bitcoin bull, Tim Draper, predicted on March 16 that “it will be Bitcoin, not banks and governments, saving the day” after the world returns from the crisis.
Apparently, Bitcoin isn’t the only cryptocurrency expected to prove itself during the ongoing instability of the global financial market. Stablecoin cryptocurrencies have gained substantial market share amid the global market turmoil. Compare this with the altcoins in the industry, which experienced a significant drop in market capitalization during the same period. As such, on March 14th Circle’s USD Coin (USDC) reached a new all-time high of $568 million — the day after Bitcoin hit a multi-month low of $3,600.