BitMEX Report: Financial Collapse Is a Huge Challenge and Opportunity for Bitcoin

On March 17, BitMEX's research arm, BitMEX Research, published an analysis of the ongoing impact of the COVID-19 pandemic on financial markets. BitMEX Research published an article titled "Inflation is Coming" on its blog, stating that the financial market crash brought on by the coronavirus is arguably the biggest economic turmoil since the 2008 financial crisis. BitMEX also compared this economic recession to the 2000 Internet bubble and the 1997 Southeast Asian financial crisis.

BitMEX Research noted that inflation could create “one big winner” under the new global financial regime, stressing that Bitcoin, created in 2009 as the first cryptocurrency ever, now has the greatest opportunity to prove its worth.

“In our view, this regime change scenario, where both the economy and financial markets are accommodative and there is no obvious anchor at all, not even an inflation target, is perhaps the biggest opportunity Bitcoin has seen in its short lifetime,” BitMEX Research wrote.

The same day that BitMEX published this article, another blog post attempted to explain why Bitcoin saw a massive sell-off last week, falling to a low of $3,600. As Cointelegraph reported, BitMEX attributed two platform crashes on March 13 to DDoS attacks.

On March 16, Tim Draper, a famous billionaire investor and Bitcoin bull, predicted that after the world emerges from the crisis, "it will be Bitcoin, not banks and governments, that will save the world."

Apparently, Bitcoin is not the only cryptocurrency that is expected to prove itself during the ongoing turmoil in global financial markets. As Cointelegraph reported, stablecoin cryptocurrencies have gained significant market share amid the global market turmoil. In contrast, altcoins in the sector have seen a significant decline in market capitalization during the same period. As a result, Circle’s USD stablecoin (USDC) hit an all-time high of $568 million on March 14, a day after Bitcoin hit a multi-month low of $3,600.