Coronavirus To Which Extent Correlates With Bitcoin’s Upsurge: Is BTC Going Up?

Coronavirus and Bitcoin

Bitcoin topped the highest values since the start of 2020 as Bitcoin is residing above the mark of $9,000. On the contrary, the traditional stock markets, especially, Chinese are giving negative trending behavior-that is correlated with the Coronavirus per some analysts.

Per the data of the year’s first month, bitcoin has been surged by almost 30% since the start of the year: 2020. First, BTC rallied as a result of strategic war tensions between the US and Iran and now, increasing due to Coronavirus attack.

Usually, it is seen that investors go for digital gold, bitcoin, during panic conditions such as inflation. But the current scenario, happening in China, has put a deep effect on the markets while bitcoin surged to $9,600-the new high of 2020.

Coronavirus Effect on Stock markets

Coronavirus has seized the economic manufacturing system established in China. As a result, there is a sudden decline in the availability of Chinese goods or products in the world markets. Bitcoin, in this condition, could be said a safe haven or asset.

Wuhan Virus Outbreak has taken out the lives of many people: 17,000 cases have been noted, so far, with 361 deaths in China only.

How Analysts are interpreting the Situation

Bitcoin maximalists and analysts have mixed views over the recent BTC behavior and about the future value. While writing about the Bitcoin’s next target, Adam Vettese, the analyst at eToro, added, ‘’ With speculation that bitcoin is on track to break the $10,000 barrier following a sustained rally … [bitcoin] still sits around a healthy $9,300.’’

How bitcoin is surging while virus is spreading on the other hand. The chief executive at the deVere Group, stated, ‘’ The ongoing upward trajectory of the price of bitcoin correlates to the spread of the coronavirus.’’ He credited the Coronavirus for Bitcoin’s upsurge as he went on further:

‘’The more individual cases that are identified, the more countries around the world that are affected, and the greater the impact on traditional financial markets, the higher the price of bitcoin has jumped.’’

The traditional markets usually affected every time the panic situation dominates the markets. The more and more this behavior seen, the more crypto assets get a kick. ‘’As trust in global institutions and markets continues to deteriorate, we will see highly mobile digital assets like Bitcoin explode in value,’’ says Jehan Chu, managing partner at Kenetic Capital- blockchain investment and advisory firm.

On the contrary, some are not, even ready, to accept that Coronavirus is responsible for the BTC rally. For example, Mati Greenspan, the founder of Quantum Economics, said:

‘’Crypto is neither acting like a safe haven in the face of the virus, nor is it selling off with the other risk assets. Rather, it remains completely uncorrelated.’’

The Virus not just pumped the coin value but also proved fatal, to some extent, for the crypto community. The two giant miners’ manufacturers have stopped the operations for a week due to the epidemic outbreak.