Popular blockchain analysis firm Chainalysis has discovered that the global economic decline due to the recent COVID- 19 pandemic has an unusual effect in Bitcoin consumer habits. The report released on March 30 focused its findings on merchant services, gambling and the darknet as well.
Chainalysis stated in the report that Bitcoin merchant services have adapted to the current global crisis. This was explained using a correlation between price and expenditure. Between July 19 and March 9, 2020, the increase in Bitcoin price was directly proportional to consumer expenditure.
The effect of the recent pandemic has also lessened this correlation by half, reducing consumer expenditure. However, the underlying factor for the recent decline in Bitcoin has little effect because, without it, the drop in Bitcoin price still amounts to reduced spending by the consumers.
For gambling, the fluctuation in Bitcoin price since early March 2020 has zero effect for gamblers.
The report also says that marketplaces on the darknet surprisingly experienced a significant decrease in revenue, which is quite unusual for the business. The pandemic, as well as other external factors, have also disrupted the supply chain of illegal substances
Chainalysis however added that darknet activity in China has picked up as the nation recovers from the COVID-19 pandemic.
