The global demand for cryptocurrencies is escalating rapidly. Back in March, the price of Bitcoins fell by nearly 50% in a single day. This might translate into a low interest in cryptocurrencies to some individuals.
Indeed, this still makes sense, when multiple billion-dollar assets lose almost 50 percent of its worth within 24 hours, it sends chills through the nerves. Nevertheless, data indicate that the global demand for cryptocurrencies such as bitcoin and other altcoins is escalating
Bitcoin and altcoins in demand
According to data shared by Yassine Elmandjra, a cryptocurrency analyst at ARK Invest, a tech investment and research firm, search engine interest in the word “Bitcoin” is nearing its all-time high; in several developing nations in South America and Africa.
Interestingly, the massive interest in the world’s most popular cryptocurrency has come to pass over the past 14 days. According to the graphical chart shared by Elmandjra, the huge plunge back in March did not deter investors.
Moreover, it appears as if the escalating demand in BTC is translating to the whole world. As per a recent report, Qiao Wang ascertained that Coinbase pro has six times more buy orders books compared to the sell order books. Additionally, stablecoin firms have been creating hundreds of millions of dollars in digital currencies in the past few weeks.
What’s the cause of the rise in global demand for cryptocurrencies?
It is unfortunate that nobody has a definite response at the moment. However, there have been several inclinations that are somewhat making the radical instance of a rise in global demand for cryptocurrencies.
First of all, central banks globally are printing more money like never before. In order to curb the societal unrest and an economic recession brought about by the outspread of coronavirus, governments and central banks have started enacting emergency measures. These include gifting free cash to the users, slashing interest rates to hike expenditure, feeding billions of dollars in liquidity into the bonds market to keep the economy afloat.
On the other hand, bitcoin halving is fast closing in. In just a little over a month, the amount of bitcoin mined daily will be halved. Due to the event, the digital currency market will be in short supply than gold and fiat.
Morgan Creek Digital co-founder, Anthony Pompliano termed these two aspects as the “rocket fuel” for BTC. He said that these two aspects will combine in conjunction to escalate the market demand of BTC at a time when its scarcity rises, forming a supply-demand curve that massively favors value growth.