Chainalysis: COVID-19 negatively impacts even darknet market

by in Cryptocurrency News

Coronavirus Bitcoin darknet

A sharp drop in the price of Bitcoin against the backdrop of global panic due to coronavirus has reduced activity in the darknet markets. This is stated in the report of the analytical startup Chainalysis.

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According to researchers, the fall in the price of BTC had a different effect on various market segments, including trading services and gambling.

Coronavirus Bitcoin

Trading services were relatively resistant to price fluctuations. According to analysts, the volume of purchases in this segment did not fall as significantly as some predicted.

The company noted that the correlation between the price of Bitcoin and the activity of using trading services has fallen by almost 50% since the outbreak of coronavirus. Experts do not exclude that this is due to the closure of many local firms due to a pandemic, as well as the desire of users to minimize the use of banknotes. It is also possible that stability in this sector was ensured by the popularity of services such as web hosting, which require regular payments.

Analysts have dawned that in the field of gambling, the flow of funds in cryptocurrency has significantly decreased. Also, there is no significant correlation with the price of Bitcoin.

Bitcoin in gambling

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In general, the degree of correlation between activity on darknet markets and the price of the first crypto reached record levels, according to Chainalysis. Among the reasons for the almost synchronous decline in these indicators may be difficulties with logistics for the delivery of illicit substances and fears of darknet sellers that the cryptocurrency they receive will depreciate in the future.

Bitcoin in darknet