BitMEX: world crisis against coronavirus will be the biggest chance for bitcoin

Specialists from the research department of the crypto derivatives exchange BitMEX analyzed the impactcoronavirus pandemics to financial markets.

</p>

Analysts note that the market's reaction to the virus &#171;will mark a significant change in the economic structure&#187;.

&#171;Ultimately, under this new order there will be one winner: inflation&#187;,- says the study.

The stock market crash due to the coronavirus was one of the largest in history, along with the 2008 economic crisis, &#171;Black Monday&#187; 1987 and the stock market crash of 1929.

&#171;There is now little doubt that the coronavirus-related financial crisis of 2020 will go down in the history books&#187;,- noted in BitMEX.

Despite all the efforts of governments to contain the crisis, this is not enough, and central banks have already “reached the limit of their capabilities,” researchers believe.

In their opinion, the US Federal Reserve's policies could only contribute to financial crises, since during each of them the solution was to lower interest rates.

So, the reaction to the dot-com bubble in 2000 was a decrease in the interest rate from 6.5% to 1%, and during the financial crisis of 2008, the answer was to reduce the rate from 5.25% to 0.25%, analysts emphasize.

Fed interest rate

&#171;No matter how we feel about monetary policy, there can now be no doubt that the current system cannot survive another crisis.It's time for change&#187;,- say the researchers.

According to representatives of the Austrian economic school, a deliberate easing of monetary policy delays the onset of the recession, but ultimately significantly exacerbates its consequences.

Business stoppage due to coronavirusis not the only problem that will have serious consequences in the future. Rising political populism, largely driven by economic inequality, and climate change will also impact the economy, resulting in “shocking inflation,” BitMEX analysts believe:

&#171;Markets are intolerant of change. Financial markets are very accustomed to the current structure, protected by central bank instruments. Volatile times are coming.

BitMEX's collapse last week was called expected by BitMEX - amid falling stock markets, investors rushed to convert to US dollars.

Nevertheless, the upcoming crisis may be an opportunity for cryptocurrencies:

&#171;In the conditions of a changed economicIn a time when the economy and financial markets are shaky and there is no significant anchor, this time may be the biggest opportunity Bitcoin has seen in its short life.the researchers concluded.

Earlier, the death of the world economic order of the XX century was announced by Cardano founder Charles Hoskinson.