Chinese Firms Keep Investing in Blockchain Despite COVID Outbreak

Investment in China’s technology sector in the last few months has seen a drastic downfall due to the coronavirus outbreak but a recent survey shows that many companies still plan to invest in blockchain technology. The industry capital venture has been tremendously affected by the existing market drop across the world. Investors are worried as coronavirus may weigh heavy over China’s manufacturing output for the upcoming months.

Meanwhile, blockchain top cryptocurrency, Bitcon, achieved a hike of $9,620 this year. Bitcoin has climbed its fresh height as China’s stock exchange is moving high sharply after Lunar break reopening. Cryptocurrency and Bitcoin predicted to reach the target of $9,600 speculatively as hurdles are getting cleared gradually. The trajectory of bitcoin price is going upward continuously proportional to COVID 19 peak, Nigel Green, the financial advisory chief executive claimed blockchain trade is expected to rise with Bitcoin price genuinely. More the number of cases identified, more the number of the infected nation hence, greater the impact over the financial market than higher will be the bitcoin price jump. 

Stock Market Value

Most of the traders suggested cryptocurrency gain a lot while the traditional market loses confidence. Global markets have been under deterioration but digital industry value is exploding tremendously. Whatever stock fall is happening it doesn’t seem to be affecting the crypto market at all. Neither the crypto is acting as a safe asset nor it is selling off assets with risk, rather it’s remaining totally unrelated. Investors predicted the recently fast coming bitcoin rally might go too far. 

Industries Remain Optimistic

A recent survey revealed that beyond the outbreak, 70% of Chinese companies with the support of potential Blockchain technology remained consistent and optimistic. About 20% are planning to invest more for crisis mitigation, as it has the capability to recover economical ravages because of ongoing COVID 19 outbreaks. It is acting as the core of social production businesses because it can establish trusted collaboration among diverse parties. 

Untouched Confidence

The pandemic suddenly paused development in many companies, but the confidence in blockchain remained intact. Researchers agreed to consider blockchain technology to be the most preferable one to defend against the economical disaster. The crypto investors started investing in digital assets have been considered as the main market force right now. 

Market Overcast

It’s quite tough to single out a reason affecting the market value and crypto business volume as in the very first place, data required is not always transparent and available. Further, the cryptocurrency market cap is not large enough as a stock exchange market, so there are various factors that could impact the market differently. But, few of the Asian traits are significantly influencing the retail investments deliberately, and seem to be more active at home. So, investors are leading the market with more potential since they are getting more time to keep a check on the market. 

Volatile Situation

The Crypto market is behaving irrationally towards the outbreak as compared to the traditional market and likely to have limited effects only. It has been observed the asset value of bitcoin went up naturally at the time of international health emergencies and the same for the geopolitical war between the U.S and Iran. Prolong pandemic has become a market influencing factor, cryptocurrency is responding to it sharply.

China is in a trade war with the United States and experiencing a rocky outlook in the economic sector. China is undergoing a Capital Winter which seems to be eased by blockchain technology up to some extent. However, there is a kindle of hope because major capital ventures are actively investing in blockchain technology despite global pandemic emergencies.