This question has kept some investors, analysts and Bitcoin interested awake. And it is that many people are bothered by the effects of Coronavirus on the opening of the Chinese stock market, as in the entire economic spectrum. Could you make people prefer to buy Bitcoin? Possible, but debatable.
Coronavirus has presented a challenge not only to doctors in China and the rest of the world. This virus also puts a shadow on the economy. It is even feared that the spread of Coronavirus will affect China’s production in the coming months, as manufacturing, materials and consumer goods companies are among the most affected.
How could it affect Bitcoin?
Before attempting to answer this question, we must remember that Bitcoin, meanwhile, rose to a maximum of $ 9,620 in 2020. For some, this is an indication that it may be a safer value asset, even in spite of its volatility.
Even since the beginning of the year, the price has risen about 30%. Before, it was driven by geopolitical fears surrounding the escalation of tensions between the US. and Iran, the expectation of halving and now some believe that Coronavirus can also affect it.
Parallel to this, the Shanghai composite index fell almost 9% at its opening before recovering slightly, despite the fact that the central bank of China announced new measures to mitigate the impact of the outbreak. That is why Bitcoin could be involved in some way in this event.
In the short term some analysts have said that economic fear could make many investors choose to secure their assets in Bitcoin or digital assets.
What if it spreads even more?
However, if the virus were to spread, it is most likely that market players were more concerned about this fact than speculating with Bitcoin. Consequently, the effects would be negative. One of them was Tone Vays, and thinking about it, his position is not at all crazy.
However, we want to hear from you. Do you think that Coronavirus could benefit or affect the price of Bitcoin given current conditions? Leave your opinion in the comments.
Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.