The gross domestic product of the usa only had its worst quarter-to-quarter fall in history. Nevertheless, the economic slump hasn’t had a negative impact on Bitcoin and its associated crypto marketplace, which has increased substantially during precisely the exact same period of time.
As stated by the US Department of Commerce’s Q2 report, US GDP dropped 32.9% in Q2, the worst quarter-to-quarter shift in the country’s history. The 2nd worst dip arrived in 1921, when GDP dropped some 28%. For contrast, the most extreme hit to GDP throughout The fantastic Recession was at the ballpark of 8%.
This information comes off the backs of 1.4 million fresh joblessness asserts, bringing the entire amount of processed claims because the start of 2020 into 54 million. Though not all these claims are busy, the Commerce department stated that some 17 million Americans are now unemployed, a shocking total that’s still about 10% of the US workforce.
While it’s a crude reminder of the financial chaos the coronavirus pandemic has generated in the USA and around that the world, the cryptocurrency marketplace has fared substantially better during precisely the exact same period.
Crypto found a surge of expansion between Q1 and Q2, based on data in crypto research company Messari. Bitcoin, by way of instance, nearly doubled its market cap within the span of Q2, rising from $118 billion into its present $204 billion evaluation.
Ethereum appreciated an even bigger growth, more than doubling its market cap within precisely the exact same interval from $14.8 billion to $36.4 billion. Data also shows that the crypto market’s aggregate market capitalization has grown from $178 billion at the beginning of April to $323 billion today.
Looking outside of price, you can see the market’s expansion in on-chain metrics as well. The number of Ethereum addresses holding at least 32 ETH (or, how many will be needed to stake an Ethereum validating node for the pending ETH 2. )0 upgrade) hit an all-time high in June. In May, Bitcoin address growth had already posted a 47% gain since the beginning of the new year, while the number of wallets holding in least 0.1 BTC recently hit an all-time high, according to Glassnode data.
As we move into Q3, the cryptocurrency market could be poised for yet another boost, as government-led economic stimulus schemes—which some analysts have argued have proved beneficial for Bitcoin and its investors in 2020—show no signs of all slowing.
The views and opinions expressed by its writer are for informational purposes only and don’t constitute financial, investment, or other information.