The Bitcoin has gushed in 2020 as stockholders fear about the spread of coronavirus. Bitcoin prices fell 3% in the last week of February due to the fear that coronavirus was spreading to more countries. After a rise in the cases of coronavirus in Korea, Italy, and Iran, people started selling off their currency as the spread of this disease may result in a downfall in the price of the currency. Alongside the spread of coronavirus, there were concerns about the slow global economic growth and boiling trade pressures. The US markets still did well from the start of this year to the mid of February, amidst the spread of coronavirus.
Effects of Corona virus on Bitcoins:
The cryptocurrency Bitcoin has increased from $7000 at the start of this year, hitting $10000 in February before falling back to $9900. Bitcoin started increasing during the market sell-off that was caused by the spread of coronavirus.
There was huge attention to the relationship from Bitcoin to coronavirus. As there was a rise in the spread of coronavirus, the cryptocurrency began to show signals that it would suffer from further fright. As of the last week of February, the price of Bitcoin had fallen by around 10%, crashing below $9000, with a drop of around $2100 in just a week or two.
Coronavirus can put the world to the edge of a global recession. Nigel Green, who is the founder and CEO of deVere Group stated that coronavirus has popped up in such a time when major economies like India, Japan, and Hong Kong are already going through a recession phase. The spread of coronavirus has been a serious hit in the global economies and supply chains throughout the world. Until the spread of coronavirus, the markets will be volatile, which will lead to sell-offs.
The cryptocurrency Bitcoin can probably be used to stop the multiplying effect of coronavirus. This can be done by stopping the exchange of physical money to different hands so that the infection will not spread further. However, Bitcoin’s popularity in China is not good enough to give a good reason for a replacement. But still, a change to digital currencies can lessen the threat of spreading the infection further.
During the last few days, global stocks have fallen considerably. This has happened due to the spread of Coronavirus and stocks have not fallen this deep since 1987. Not only cryptocurrencies but every market like precious metals also has felt the rage due to the spread of this deadly disease. Investors speculate that the fear of this disease can make things even worse for assets like Bitcoin.
Despite the downturn in cryptocurrency markets, investors think that Bitcoin will still touch its all-time high again in the coming years. It has been over two years since the Bitcoin touched its all-time high which was at around $19,500 and it is currently down by around 57% from its all-time high. It is not quite easy to judge as to when it will reach its all-time high as the markets seem to be very volatile after the spread of coronavirus.