When everyone started to relax, thinking that the worst of the Coronavirus had already passed. However, the crisis that has brought the world to its knees since March seems to be starting a second wave. Which threatens to upset the stability of all the countries of the world once again. So, given this possibility, we must ask ourselves if a second wave of the Coronavirus would benefit Bitcoin.
The Coronavirus crisis returns
It is difficult to imagine an event in recent decades that has had such a profound impact on the planet, as the Coronavirus has. And it is that, the disease born in the city of Wuhan in China, has affected practically every country in the world. Leading to the unfortunate number of thousands of deaths daily, while also causing the collapse of the world economy.
Thus, the last months have been of survival for most of the world, which has resorted to radical measures such as quarantine and the total suspension of economic activities, to try to avoid a massive contagion that leads to the death of millions of people.
However, when the countries of the western world were already congratulating themselves on their triumph against the Coronavirus. Gradually opening their economies, faced with a radical drop in the number of daily COVID-19 infections. A second wave of the disease appears to be starting in developed countries. With its epicenter in the United States, but with signs of major outbreaks in European countries.
This is a situation long feared by health experts. Whose advice to governments aimed to eliminate the possibility of a second wave, and the terrible economic and human effects that it would bring. Which will undoubtedly have a major impact on the price of Bitcoin.
Bitcoin and the second round of COVID-19
The relationship between the price of Bitcoin and the advancement of the Coronavirus worldwide is an issue that has been debated since the first COVID-19 outbreaks in Wuhan City. When crypto analysts started predicting that the price of BTC would rise significantly as the disease progressed.
This would happen, according to these experts, because being an active store of value, Bitcoin would serve as a refuge for capitals around the world fleeing from the worst effects of the Coronavirus. Something that never finally happened, on the contrary, experiencing a collapse in the price of cryptocurrency as soon as the disease reached the west.
Despite this, when a second wave of the Coronavirus seems inevitable. Voices within the crypto market begin to emerge again, saying that it will end up benefiting Bitcoin. Well, the damage it will cause in the traditional economy will lead more and more people and organizations to look to the cryptocurrency for an alternative.
However, if the first wave of the Coronavirus taught us anything, it is that a pandemic does not benefit anyone. Even more so at this moment, when the correlation between Bitcoin and the stock market has reached historical records.
Which means that a collapse of the traditional financial market will negatively affect BTC. Making its price drop at the same time as Wall Street does. So, ultimately, we consider that a second wave of COVID-19 will be as negative as the first for the price of Bitcoin. This being our Today’s Data here at CryptoTrend.