Optimism is unleashed within the crypto market, and it is not for less. And, in recent days, we have witnessed one of the biggest bullish rallies of recent times in the Bitcoin market. Which has led to its price being very close to $ 10,000 once again. However, as Joe DiPasquale warns, these gains could be lost very soon without further coronavirus advances.
In CriptoTendencia we have repeatedly stressed the situation of Bitcoin as an asset reserve of rising value. That is, as a financial asset in which capitals take refuge in times of political, economic or social uncertainty. To try to protect its value against a possible collapse in the market.
Therefore, we are not surprised that it is considered that a tragedy such as the advance of the coronavirus in China may cause a rise in the price of Bitcoin. Well, respiratory disease has caused partial paralysis of important economic sectors. In both China and neighboring countries such as South Korea.
Causing fear among investors that the expansion of the coronavirus can seriously affect the world economy. Which has led world capitals to seek refuge in assets such as gold, and of course, Bitcoin.
However, this effect on the price of BTC is not eternal. Well, it depends on maintaining a situation of uncertainty generated by the progress of a virus. That, so far, the Chinese government seems to be struggling relatively successfully to contain.
Therefore, the position assumed by Bitbull Capital co-founder Joe DiPasquale is understandable. Who, in a conversation with the co-founder of Sam Bankman-Fried, commented that if the risk generated by the advance of coronavirus stopped. Without being replaced by any other reason for worldwide alarm. Then the price of BTC could fall again even to $ 6,800.
“I think if the restlessness continues, if things like the coronavirus get worse … Gold and oil prices go up, I can see that the price of Bitcoin continues to rise, and if not, then we could have a setback at $ 6,800“, Said DiPasquale.
This would also position DiPasquale within the group that explains the 40% increase in the price of Bitcoin so far in 2020, from the global events of recent weeks. Unlike those who believe that the reason for the BTC bullish rally lies in the technical fundamentals of the crypto market.
Today, when the governments of the world put all their effort in stopping the advance of the coronavirus. We may have the opportunity to discover which of the two groups is right, by observing the development of the price of Bitcoin in the coming weeks, prior to the halving of BTC that will occur in May. What makes this our Data of the Day here in CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.
