Coronavirus VS Bitcoin
Bulls or bears? How will Bitcoin react on the outbreak of coronavirus?
An outbreak of coronavirus (a new type of pneumonia) began in Wuhan in central China in December 2019. On December 31, 2019, Chinese authorities informed the WHO of an outbreak of an unknown infection. Already on January 30, 2020, at a WHO meeting an outbreak of coronavirus was recognized as an emergency of international concern.
For February 26, 2020, in 46 countries there are more than 81 thousand infected, and most of them are in China. In this article we will reveal the direct relationship between the biological virus and the cryptocurrency market.
In early February the founder of the large pool BTC.TOP, Jiang Zhuoer, said that one of his large mining farms was visited by police officers, who demanded to suspend production due to the rapidly spreading coronavirus in China.
Most will think that this will lead to a sharp drop in the quotes of the cryptocurrency market, however, BitXmi team analysts anticipate another trend:
The suspension of work or the complete shutdown of China’s mining farms is directly related to the speed and complexity of Bitcoin mining. For a short time, the Bitcoin rate may drop from 3 to 5%, however, other countries will certainly use this opportunity. For example, Sweden and a number of other European countries, where mining equipment is already actively transported. An active connection will undoubtedly entail an upward Bitcoin trend.
Another reason for the bull trend, according to BitXmi experts, will be interruptions in gold mining from China, which is in first place in the world and produces 426 tons of gold per year. The price of gold will rise, and the CNY rate will fall, which, in turn, as in the spring-summer of 2019 can lead to higher prices for Bitcoin.
Consider the effect of coronavirus on the economy of other countries:
“As U.S. stocks tumbled on Monday by the most in six months amid renewed coronavirus fears, bitcoin barely budged – at least in terms of the notoriously volatile cryptocurrency’s trading history.” – Bradley Keoun – the senior market reporter of CoinDesk, writes in his article.
As of February 26, bitcoin fell by only 3%
“There’s certainly a bit of fear in the bitcoin market, but it’s not anything close to the panic we’re seeing on Wall Street today, with the clear flight to safety,” said Mati Greenspan, founder of the analysis firm Quantum Economics, which specializes in cryptocurrencies and foreign exchange. “Three percent is a very different figure for stocks and for bitcoin.”
As you can see, all of the above arguments suggest that you shouldn’t rush to get rid of Bitcoin, transfer it to other cryptocurrencies or even sell it. The BitXmi team of technical analysts recommends differentiating risks, but also not to miss the chance to play on raising Bitcoin on bitxmi.com.
Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.