- The coronavirus outbreak continues to spread and its impact on bitcoin’s price is quite visible.
- With the spread of coronavirus, the investors moving towards safe-haven assets and surprisingly Bitcoin is a highly in-demand asset.
Whether it is socially acceptable to say or not, but the cryptocurrency industry seems to be on a bullish growth. The deadly novel coronavirus holds the potential to wipe out hundreds of people across the country. Cryptocurrency investors have a prospective to buy Bitcoin and raise the prices of the cryptocurrency.
It noted in the past that both positive and negative geopolitical and global events have a significant effect on the prices on Bitcoin, especially events that have a crisis-like nature to them.
Everything from the banking system collapse in Cyprus to the social system impairment in Venezuela and Brexit has pumped the prices of Bitcoin to relative heights.
China already holds the world’s most significant digital transaction volume in the world and has therefore been a strong indicator in the direction that the Bitcoin market takes. Therefore it is only expected for a potential disaster in a country with such a large transaction volume to increase the prices of Bitcoin.
A Chinese individual within the country who has been hearing rumors of a potential coronavirus outbreak has first instincts for a “fight or flight” response to which most would react with trying to isolate themselves from the coronavirus.
This might involve investing in digital currencies like Bitcoin in the fear that the economic system might fall into ruins due to the impact of the coronavirus or to have holdings in a safe-haven asset, particularly a cryptocurrency due to its decentralized nature, global accessibility and popularity in the country.
This rising uptrend in the Bitcoin market can be traced back to the first reported instance of coronavirus on 30 December 2019. The prices have been on a constant uptrend over the last month growing by nearly $1700, a growth of almost 30% over the month.
The gradual uptrend is more visible over the past week, as the media outlook on the coronavirus has become more and more pronounced, on the graph as prices went from trading at $8,300 to a high of $9,040 currently as of press time.
Irrespective of the potential global catastrophe and the moral conscience conflicts that might come with it, the cryptocurrency market sees this as an excellent opportunity to invest in some Bitcoin.
As the situation settles, and the coronavirus controlled, the prices of Bitcoin can be expected to drop temporarily to a support point to stabilize before possible rising again.