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Australian Crypto Adoption Accelerates, Experts Predict $13k USD Bitcoin as COVID-19 Lockdown Returns
Millions of Australians are now unable to leave home due to the return of COVID-19 quarantine measures — but crypto markets remain open, amplifying cryptocurrency trade, investments, and real-world use cases.
Victoria Premier Daniel Andrews announced the first closure of Victorian state borders in over a century on Monday July 6th, heralding a return to stage 3 lockdown for an additional six weeks across the state.
The COVID-19 pandemic and ensuing lockdowns have decimated share markets, rocked the Australian economy, and forced over 70 percent of Australian businesses to accept support measures facilitated by the Australian government such as wage subsidies or deferred loan repayments.
Bloomberg Analysts Predict $13,000 Bitcoin
The fiat economy is struggling to recover from the ongoing international coronavirus lockdown. The digital asset economy, however, is showing strong signs of life — Bloomberg Intelligence’s July 2020 Crypto Outlook reveals a positive outlook on mid-year digital asset markets, citing favorable macroeconomic conditions and record-breaking inflows of institutional capital.
Bitcoin is in high demand, with Bloomberg analysts predicting a breakout pushing BTC prices to a $13,000 USD ceiling — a prediction mirrored by Australian cryptocurrency investors and traders.
Early March lockdown announcements around the world saw investors flood crypto markets with buy orders, with major exchanges such as Binance experiencing a 500% increase in deposits that exceeded $1.3 billion in just 48 hours.
Stimulus Payments Stimulate Crypto Market
Stimulus payments provided to Australians and US citizens by their respective governments have also appeared to have played an important role in bolstering the crypto economy. Although stimulus payments were intended to help Australians cover expenses during the financially difficult lockdown period, market analysis reveals that many recipients have directed stimulus capital towards digital asset investments.
Coinbase co-founder & CEO Brian Armstrong published Coinbase reposit data in mid-April revealing a significant spike in cryptocurrency purchases that match the $1,200 US stimulus package, a pattern reflected in Australian crypto markets.
Data published by blockchain analytics firm Glassnode indicates renewed global interest in cryptocurrency — the number of active Bitcoin addresses that hold 0.1 BTC or more reached a new all-time high in mid-June.
The seven-day moving average of the number of active Ethereum addresses has also peaked to the highest point in two years, mirroring numbers last seen before the late-2017 all-time Bitcoin price high of nearly $20,000 USD.
Australians aren’t only interested in buying cryptocurrency, however — they’re also spending it in Australian retail stores at record numbers. Data published by crypto payment platform HULU via Bitcoin Cash reporting platform Bitcoin BCH indicates that retail crypto spending is returning to pre-lockdown levels via HULU alone.
With over $180 billion in value transacted over the Bitcoin network in the second quarter of 2020, Bitcoin dominance continues, amounting to $2 billion per day in value transfer.
Author
Sam Town
Sam Town is a FinTech and Blockchain Journalist from Adelaide, Australia. I work with a broad spectrum of finance, technology, and blockchain businesses to deliver engaging, high-quality content across a range of topics. Areas of specialization include FinTech, blockchain, NeoBanks, crowdfunding, P2P lending, tax structuring & strategy, artificial intelligence, InsurTech, and finance IoT applications.
