The Impact of Coronavirus on Bitcoin

Industry |

The Coronavirus has created an impact on the market and a major impact on China’s economic growth. Investors are being very cautious until they find out how serious this virus might be.


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According to Mati Greenspan, analyst and founder of Quantum Economics, attitudes are obvious. He said that from an uploaded chart of the US bond yields, a one-month performance delivered higher returns than over 7 years. 

He said this shows that investors are very nervous and expecting trouble in a short period of time.

Unease and economic uncertainty on markets have sparked increased bullish action for Bitcoin. According to Cointelegraph, the recent Iran crisis is just another example of geopolitical events that have affected the price of Bitcoin.

Greenspan believes Bitcoin seems to remain a highly non-correlated asset but the mainstream media claims Bitcoin has defied all traditional markets by gaining from the expectations of the Coronavirus. But the statement was quickly shot down.

A report from the Financial Times headlined “Coronavirus is good for Bitcoin” but came under a lot of criticism. According to Cointelegraph, for a long time, Bitcoin has exhibited strong technical fundamentals that proceeded with recent price moves.

Can The Virus Hurt BTC?

Trader Tone Vays stopped short of agreeing that the virus could fuel further gains. If these reports were to spread internationally, investors could easily panic and would reduce their activity with less interest in assets such as Bitcoin.

 

During Vays’ latest Trading Bitcoin YouTube series, he said the Coronavirus does bring about some economic fear that this virus could spread which would if anything, help the rise of Bitcoin vs harming Bitcoin.

In order for Bitcoin to seal its recent bullish gains, it would have to remain above $9,000 for at least several days.

Google Trends seems to play down the lack of interaction between the virus and Bitcoin with search interests of the latter staying comparatively flat over the past month.

The Coronavirus has certainly turned many industries and investment firms on their heels. The disease has quickly spread throughout China and some outbreaks have been reported in the United States. 

Only time will tell how this will all end but most investors are watching the market very closely and will probably play it by ear.