Bitcoin price had been soaring over the last two months, reaching over 60% ROI year to date. But recent fears over the coronavirus has caused markets to tank, including the stock market and the crypto industry.
Meanwhile, gold, the safe-haven asset investors flee to during times of economic distress has been skyrocketing. Does the divergence between gold and its digital counterpart following the coronavirus scare that put an end to the Bitcoin as a safe haven narrative?
Coronavirus Concerns Cause Major Financial Market Scare
The coronavirus is spreading rapidly, and even the CDC is warning that the virus reaching the pandemic level may be inevitable.
But possibly worse than the pandemic and virus itself, is the impact it is having on the global economy.
Related Reading | Coronavirus Fear Shakes Up Markets, But Crypto Remains Unaffected
Global stock markets have been tanking, closing out some of the largest losses in over a year.
Transportation is affected, and production facilities around the world – notably in the manufacturing epic-center of China – have been shut down.
Worst of all, fear, uncertainty, and doubt are causing the global community at large to absolutely panic over the potential implications of the pending pandemic.
That fear has spilled into cryptocurrencies an asset class where its investors were just days ago talking about new all-time highs and picking out the color of which Lamborghini or Tesla they were interested in buying.
But once the stock markets began to plummet, crypto investors took a moment for pause, wondering if their high-risk, speculative asset could fall just like stocks backed by tangible fundamentals did.
And fall it did. Bitcoin dropped from highs of around $10,500 to as low as under $9,000 as of the time of this writing. With fears over the coronavirus and how it could further decimate the global economy, the crypto market selloff may continue.
Meanwhile, gold, a flight of safety for investors throughout the ages, has been rising in value as investors fear a recession ahead.
Has the Pandemic Put an End to Bitcoin as a Safe Haven Asset?
Bitcoin, the digital counterpart to gold, spent the better portion of 2019 rising alongside the precious metal, fueling a “Bitcoin as a safe-haven narrative” that is still widely discussed today.
But with gold reaching new highs, but Bitcoin and other crypto-assets falling like traditional stocks, that safe haven narrative may need to be put to rest.
During the recent global stock market rout investors dumped risk asset and fled to their safe haven of choice. #Bitcoin not only followed risk assets lower, but led the decline. How can an asset that falls more than risk assets during market declines be considered a safe haven?
— Peter Schiff (@PeterSchiff) February 26, 2020
While it’s true that Bitcoin shares many similarities as gold, including relative scarcity, the first-ever cryptocurrency is still relatively young and lacks adoption or a use case.
Gold, meanwhile, has been traded, used, and held for millennia.
Related Reading | Okay Boomer: Millennials Prefer Bitcoin To Gold During Crisis
And while millennial investors may see the benefits of Bitcoin, it’s the baby boomers that command much of the world’s current wealth that makes up the flight of capital from stocks to gold.
With a real economic catastrophe finally here, will Bitcoin‘s true value come to light? Or has the safe-haven narrative been tarnished by the coronavirus for good? origin »
The last time the block reward for Bitcoin mining was halved was in July 2016. Since then, the crypto marketsContinue Reading
The post A Trader’s View on the Bitcoin Halving and Coronavirus appeared first on CoinMarketCap Blog.
Just weeks ago, Bitcoin’s long-term outlook was anything but bullish. As the macroeconomy started to feel the effects of the coronavirus outbreak, global markets crashed in tandem, leaving no asset classes spared, crypto included.
The world is finally cozying up to Bitcoin in a pretty serious way, and that has even been fueled by the current Coronavirus global pandemic that has many central banks encouraging the use of cashless means of payment.
It's a common refrain: The U.S. dollar will be debased by the trillions in coronavirus aid. That should strengthen the case for bitcoin... theoretically.
In brief: Bitcoin (BTC) has this morning reclaimed the $7,000 value once again. Its movement is amidst global reports of some countries winning the war against the Coronavirus. With halving only days away, Bitcoin might continue with its upward trajectory.
Despite the global turmoil caused by the coronavirus and a looming reward halving, the Bitcoin mining industry appears optimistic.
The post Coronavirus, the Halving and a Price Drop: Bitcoin Mining Marches On appeared first on Bitcoin Magazine.
Bitcoin is now recovering from coronavirus infection, Coronavirus hit hard on Bitcoin and traditional markets, when btc price dropped by 40% in single day on 12th March. Bitcoin Bulls have shown nice buying momentum last week, and btc price bounced from 4500$ and retested 7100$(Bitstamp).
For one of the first times ever, Bitcoin is trading at a premium on Chinese OTC trading platforms. China is slowly but surely recovering from the coronavirus — and now it looks like the country is also leading the Bitcoin buying during this bearish period for the cryptocurrency market.
Bitcoin logged its wildest week for the first time in seven years, plunging by more than 50 percent after a sell-off sparked by the worsening Coronavirus pandemic. The benchmark cryptocurrency on Friday crashed from $8,187 to $3,858 with a matter of 30 minutes.
With the coronavirus epidemic now reaching New York, many banks are evacuating their staff. While Wall Street could struggle in the upcoming months as a result, Bitcoin trading platforms are unlikely to be affected.
Most financial markets have been impacted by the widespread transmission of coronavirus including the cryptocurrency market. The following analysis takes a data-driven and technical approach to explore how Bitcoin has...The post Bitcoin Regains the $9,000 Level Despite Coronavirus Fears appeared first on Crypto Briefing.
The World Health Organization (WHO) Director-General Tedros Adhanom Ghebreyesus has observed the stock and Bitcoin market responses to the coronavirus and concluded that there is much irrationality afoot.
The global markets have been caught within extreme turmoil over the past several days, with the rapid spread of the Coronavirus striking fear into the heart of investors. This has led the Dow Jones to plummet, with the decline of traditional markets also coming alongside a strong Bitcoin correction.
As coronavirus continues to spread mass panic around the globe, its impact on bitcoin is becoming more and more evident.
The post 3 Ways Coronavirus May Have Affected Bitcoin appeared first on CCN.com
Bitcoin has gained $400 from $8,300 to $8,700 since yesterday in what appears to be a potential market reaction to a virus outbreak in China. Most global stock markets are...
The post Bitcoin Rises Stocks Dive on Coronavirus Concerns appeared first on Trustnodes.
News that the coronavirus had spread to at least two people in the US sent Bitcoin and stocks tumbling. Markets dropped as much as a full percent, and Bitcoin followed suit. The news of two cases in the US were both confirmed by the Center for Disease Control (CDC).
Bitcoin prices on Friday are plunging after marking their highest levels in over two months, hurt by an improving outlook of the eurozone economy, the stronger dollar, and – none the least – the Coronavirus outbreak in China.
Coinspeaker Coronavirus: Will Gold and Bitcoin Prices Rise as 2nd City in China Blocked?The Hubei Province is under extensive attention by the authorities after a new strain of deadly virus spreads from the central part of the Wuhan.
Bitcoin entered a negative slope on Thursday as traders took profits from its latest price rally. But the cryptocurrency remained above a strong technical support level. Spot BTC/USD exchange rate was down 3.
Chinese stocks took a plunge last night and posted their biggest loss in three decades. Investors are hoping that it’s not indicative of a deepening problem. Panic has been hitting the world’s second-largest equity market as of late.
In a single day, $1. 05 trillion was wiped out of the US stock market. This decline represents one of the largest of any single day in recent times and also reflects a mix of unsatisfactory economic data and huge struggles among major companies.
GameStop stock (NYSE:GME) price drop has had a profound impact on the meme coins, leading to widespread declines in meme coin prices. While GameStop Corp. is a renown American video game, consumer electronics, and gaming merchandise retailer, its stock among the meme stocks which is the reason as to why its price movement correlate with […]
Ronin, an EVM blockchain specifically designed for gaming, is the brainchild of Sky Mavis, the creators of the popular Web3 title, Axie Infinity. This game alone has generated over $1. 3 billion in revenue.
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Despite the raging impact of inflation in different economies, monetary authorities have not been sitting on their oars, rather, they have been fighting the surge through consistent interest rate hikes.
Bitcoin over the years has shown an increasingly strong positive correlation with the S&P 500 and other major US stock market indexes. When the correlation weakens and turns negative, price movements in BTC can be especially substantial.