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Bitcoin sinks after WHO declares Coronavirus a pandemic

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Today the World Health Organization (WHO) has called the outbreak of Coronavirus a pandemic. The announcement has marked a further drop for traditional financial markets and also for Bitcoin and the crypto market.

A pandemic is a disease that spreads in several countries of the world simultaneously and, according to Tedros Adhanom, Director of the WHO, this is the case of the Coronavirus.

“We have evaluated that the covid-19 It can be characterized as a pandemic, ”said Adhanom in a meeting with the media.

“We are concerned about the alarming levels of spread and the alarming levels of inaction.”

Tedros Adhanom

Adhanom says that the high number of cases outside of China makes it necessary to change the definition from epidemic to pandemic. Also, this is a word that should not be used lightly since “it can cause fear, irrational fear, or unwarranted acceptance that the fight is over, which will lead to unnecessary suffering and death.”

This irrational fear has quickly spread to financial markets and the crypto market. This leads us to ask ourselves: What has been the impact on the price of Bitcoin?

Pandemic?! What happens to Bitcoin?

Fear quickly settles in the American market after the WHO announcement, and the crypto market is not exempt.

The Dow Jones has fallen 1,033 points to 23,571 according to Yahoo! Finance, while the S&P 500 has had a fall of 5.05% and Nasdaq 100 has fallen 4.23%.

Also, an analyst at Goldman Sachs assured that the S&P 500 has ended its bullish streak and that it could be one step away from a 15% cut in the coming weeks.

The bad omen that has raised concerns about the possible negative impact on the world economy.

Meanwhile, cryptocurrencies have not been without panic in the markets.

Bitcoin is down 2.21% so far this day, starting the day with a price tag of $ 7,935 and, at the time of writing, it is at $ 7,759.

Bitcoin (BTC) chart according to CoinMarketCap

Nonetheless, Ethereum (ETH) has responded to the announcement more dramatically with a cumulative drop of the day of 5.85%

Despite the fact that Bitcoin’s decline has not been as marked as that of traditional financial markets, this could be reversed with the passage of hours.

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