The COVID-19 outbreak has seen increasing disruption in the financial markets as well as on the political front globally. Be it fiat currency or virtual currency, all of it has taken a toll. The article shares the effects of coronavirus on the global economy. It highlights the effect of the pandemic on major crypto currencies – Bitcoin, Etherium and Ripple. Several initiatives are taken by the crypto community which should be discussed about. And the question which every investor is wondering – Is it the right time to buy crypto?
If you are a trader, crypto enthusiast or an crypto exchange platform owner, this article is your food for thought. The article shares insights on all the above mentioned ideas. Initially, let us understand the impact of coronavirus on global economy.
Coronavirus Impact On Global Economy
Before understanding the effect of coronavirus on crypto market, let us see how it has affected the global economy.
Downgrades in economic forecasts
The Institute of International Finance (IIF) said that the global uptick in gross domestic product could be as low as 1% this year. Various institutions have downgraded their global forecasts over the last few days. The global economy was expected to grow by 2.4% in 2020, whereas the projected value was of 2.9%.
Slowdown in manufacturing activity
The Caixin/Markit Manufacturing Purchasing Manager’s Index showed that China’s factory activity has taken a hit in February. It has come at a record low of 40.3. This kind of a slowdown will affect the countries with close economic tie-ups to China.
Declining oil prices
The oil prices have declined due to the slowing down of economic activity. China, which is the origin of the coronavirus outbreak, is the world’s largest crude oil importer. The reduction in demand of the oil has led to the fall in oil prices.
The virus have lowered the confidence and hurt the sentiments of the investors. It has brought down the stock prices in major markets.
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