The scare of the coronavirus has had a huge effect on the global economy and financial markets, prompting many firms to close their doors and causing asset prices to fall. Digital currencies, dropping in value and thus heading in the same path as more conventional properties, have also been affected.
Although several observers viewed Bitcoin as a safe haven during times of economic turmoil, this idea was undermined by its actions during the pandemic as the price of the digital currency moved in the same direction as stocks. This behavior ignited concerns about the use of Bitcoin as a diversifier, as it lost value along with more conventional assets right away. On the other hand, it might have been merely a temporary event to travel in the same direction as stocks.
In other words, in these tough times, market analysts can benefit greatly from watching digital currencies to see how their values behave forward.
