What the Bitcoin has been infected by the Coronavirus?

Since the beginning of the 2020, especially in the last 3 weeks, we are bombarded with the advancement of the Coronavirus at the global level. Daily known new cases in different countries of the world, while the financial markets collapse, and Bitcoin seems to “follow that road”, at least until now. The ecosystem of the cryptocurrencies is starting to see the effects of Coronavirus, not only for the strong low of Bitcoin in the last week, but due to the massive cancellations of events Crypto / Blockchain in different parts of the world, the most recent being the Paris Blockchain Week.

Fear of the world by the advance of the Coronavirus

Although the Coronavirus has a death rate relatively Low (around 3.4% at the time of writing), the feed-brake to new countries, as recent cases in Argentina, Chile and Mexico, causing a panic at a global level. It is not for less. The good thing is that more than 50% has already been recovered, as can be seen in the graph below. At the time of publication, the Coronavirus has a death rate of 3.4% Now, going to the plane of the financial markets, the Coronavirus, is making disaster, literally. The index followed by the US, and the world, the S&P 500 has given up more than 10% in the past 2 weeks, causing it to evaporate billions of dollars. This scenario is so chaotic not seen since 2008, when the outbreak of the subprime crisis in the united States. In the graph below we can see how the S&P 500 has lost close to 400 points, since the maximum of 3.386 points, logged back in on the 19th of February. Graph of the S&P 500 for the past few months. Source: Yahoo Finance

What the Bitcoin is the salvation?

If something has proven to the Bitcoin over its short history is that it works very well as a active shelter, even in some periods of time better than the gold. Now, in the last days the strong drop of the BTC is putting in doubt this question, at least for some, not for those who write them. In the graph below we can see how the Bitcoin has lost $ 1,600, the maximum of US$ 10.400, logged back in on the 11th of February. Graph of Bitcoin in the last month If for a moment we analyze the Bitcoin as an instrument more of the financial markets, we see that there is “some correlation” with the collapse of the bags of the last few weeks. What chance? I don’t think so. What is harboring investors?, since they apparently are not buying Bitcoin, not gold, and much less actions. Will the money be disappearing? How to recently wrote Ivan Uriel Lopez Gutierrez, a collaborator of CriptoTendencia: The simple answer is the money is not going anywhere when the market is falling, mainly because I was never there! And to try to explain it clearly; we have to keep in mind that the money is not real, it is only an idea, a concept or a notion.

Conclusion

To conclude, and to answer the question in the title: how The Bitcoin has been infected by the Coronavirus? The answer is absolutely yes. But the good news is that is already in the list of recovered (Total Recovered). This means that you are ready to stand up, and be again the active refuge par excellence to preserve our savings in times of uncertainty like the present.

Did you like the content? Share it

Cryptocurrency Market