3 Ways Coronavirus May Have Affected Bitcoin
Bitcoin Bitcoin’s rally has occurred almost in lockstep with the spread of coronavirus. Still, analysts are cautious to attribute the gains to the outbreak. | Source: Shuttersock. | Source: Shuttersock Is there a correlation between bitcoins price action and the coronavirus spread? Virus-infected yuan placed in quarantine—Bitcoin fixes this. Bitcoin mining takes a dive following China’s coronavirus clampdown. As coronavirus continues to spread mass panic around the globe, its impact on bitcoin is becoming more evident. Here are three critical repercussions for BTC amid the outbreak. As The Coronavirus Spreads, Bitcoin Continues To Break Out Bitcoin is proving its worth as a macro hedge against global uncertainty. Year-to-date, BTC has achieved a 35% boost and managed to hit a yearly high north of $10,000 last week. BTC year to date gains 2020 coronavirus Bitcoin’s year-to-date gains seem to correlate with the coronavirus outbreak. | Source: Tradingview For many, this is clear-cut evidence to solidify bitcoin’s status as a risk-off asset. The notion goes that with China’s economy weakening, Chinese investors have piled in on bitcoin to make use of its safe-haven narrative. Watch: The Coronavirus’ impact on the Chinese economy. On Feb. 3, one of China’s foremost stock indices—the CSI 300—plunged 9% in what was dubbed its worst open in over a decade. To add salt to the already festering wound, the Shanghai Composite Index nosedived 8%. Chinese stocks quickly bounced back. An attempt at economic stimulus appeared to do the trick, with the Chinese government cutting interest rates to bolster the economy. Meanwhile, bitcoin continues to hold near $10,000. For prominent crypto markets analyst Mati Greenspan, the correlation between bitcoin and the coronavirus dip is merely coincidental. Speaking to CCN.com, Greenspan said:
With the official death toll mounting to 1,775 and 71,811 confirmed cases of the coronavirus worldwide, China is stepping up its prevention game.
China has begun using ultraviolet light or high temperatures to disinfect banknotes, according to a central bank press conference. The prevention strategy includes quarantining the banknotes for up to two weeks before redistribution.