As coronavirus continues to spread mass panic around the globe, its impact on bitcoin is becoming more and more evident.
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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 $10,000last week.
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:
This is a good aeticle which relates to the curent situation . Even hyoer inflation ia sure to come some day just poat covid19