Bitcoin Price Topples Due To Coronavirous Effect; Will Bitcoin Reclaim its Strength?

Prerna Sengupta
Prerna Sengupta is a writer for Thecoinrepublic. She is a law student at NALSAR University of Law, Hyderabad. She is interested in Tech Law and is especially keen on cryptocurrency, blockchain, and Bitcoin. She hopes to pursue this field in the future as a lawyer.
  • Since the world is under the coat of Coronavirus, it was assumed that Bitcoin would continue to rise this year, proving as a cocoon for the equity market.
  • The early rise in the price of BTC as a result of the investors who believed that Bitcoin would prove a safe-haven asset in the market, but the outcome was quite disappointing which in result made investors withdraw their assumption.

Since the world is under the coat of Coronavirus, it was assumed that Bitcoin would continue to rise this year, proving as a cocoon for the equity market. But the situation became exactly inverse resulting in the price drop of the top player of crypto market Bitcoin.

After its recent jump from $10, 000 on February 9 to its peak $ 10,474.20 on February 18, Bitcoin tumbles to a drop of $8,568.65 returning to the same value of last January.

Surrounded by major ecological pressure between U.S and Iran and then the fear of Coronavirus influencing the universal trade, Bitcoin has bobbed through the first few weeks of 2020 gaining 30% of hike in the commencement of this year.

It became a point of concern for the traders about the preliminary rise, and subsequent fall of Bitcoin is due to the spread of the virus.

The early rise in the price of BTC as a result of the investors who believed that Bitcoin would prove a safe-haven asset in the market, but the outcome was quite disappointing which in result made investors withdraw their assumption.

Investors are worried about the spreading of Coronavirus will affect China’s offshore trade with materials, manufacturing and consumer goods companies which ultimately hit their stocks to drop.

Coronavirus Affecting Bitcoin Prices

As per current records, the Coronavirus has destroyed 361 lives in China and one in the Philippines with confirmed infection of 17000 people in the country.

There is a fall of 9% in the Shanghai Composite index at its opening before recuperating a little. Regardless of this, China’s Central Bank announced some new actions to simplify the impact of this occurrence.

On the other side, the situation of China is so weighty that people started withdrawing their Bitcoin assets. One of the Contributors in the crypto market Peter Tchir wrote in Forbes that the Chinese economy had been so much aggravated due to various conditions and travel restrictions that the public is bound to sell BTC to purchase goods and services.

On February, 25, Kraken director of business development Dan Held said that he assume Bitcoin will touch $100, 000 shortly.  Nobody knows where exactly Bitcoin will shift; It’s just a guess.

Assuming Bitcoin as a safe investment under these circumstances is not true always. The traders have to wait for the cutback of this infection to gain the market value again.

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