- Bitcoin fundamentals will strengthen after this crisis
- BTC difficulty drops 16 percent
- Bitcoin and crypto firms join the fight against COVID-19
Bitcoin News Today – Over the past few days, the price of Bitcoin (BTC) has been relatively stagnant. The digital currency has been trading between $6,500 and $6,800 for some days. Bitcoin set the trend for all altcoins in the market, as they followed suit. However, XRP broke out of the circle for some time, as it surged by more than 10 percent on Thursday and Friday to multi-week highs.
Bitcoin Fundamentals Are Becoming Stronger
While BTC could plunge lower easily, many analysts are saying that the fundamentals of the digital currency are becoming strong than ever. For instance, Chris Burniske of Placeholder said, “the crisis will pass, and the fundamentals of crypto will have strengthened through it.”
He pointed out how “new technologies emerge as old systems break, and usually it takes a crisis to reveal the flaws of the old system in full.” The recent action of BTC comes as the stock market has seen a very strong recovery with Dow Jones surging by more than 20 percent from the near-18,000 lows seen on the Friday before last. Interestingly, the correlation between Bitcoin and the S&P 500 futures, which were very close, has eroded.
Bitcoin (BTC) Price Today – BTC / USD
Nevertheless, the past week was pretty interesting for the digital currency space. According to reports, the national cryptocurrency of China is still on track for launch. Binance is also launching a debit card to allow BTC holders to spend their coins in stores. Furthermore, US politicians are proposing a “digital dollar” payment mechanism. All these are impending sentiments to further boost the value of the digital currency.
Bitcoin Difficulty Drops 16 Percent
As a result of the crypto market crash earlier this month, Bitcoin mining has been less profitable and some miners have been forced to shut down their operations to avoid mining at an unprofitable rate. This slowed down block times and BTC transactions have been abnormally slow. However, they just implemented a fix. The difficulty of BTC network adjusted 16 percent – the second-largest difficulty in the history of BTC difficulty. With this adjustment, miners will be able to find BTC blocks, which would help reduced transaction times.
Crypto Firms Announce COVID-19 Initiatives
The outbreak of the coronavirus has worsened over the past few days. According to reports, over 500,000 people are already affected, with many in Italy and the United States. This has made many companies come out, with some making supplies and others donating money. Cryptocurrency firms across the globe have also joined this fight.
For instance, Binance said it would donate $1, up to $1 million, for every retweet with the hashtag #CryptoAgainstCOVID. Ripple has also committed to donating $100,000 to two Silicon Valley-centric COVID response funds.