Every day governments worry more about their expansion, increasing media coverage and causing fear in the population. And, the unfortunate advance of the coronavirus worldwide, is threatening the normal functioning of our world. However, there is a sector where it is not clear what the impact of this disease will be. We refer to Bitcoin, and especially the price of cryptocurrency.
Bitcoin An asset value reserve?
The beginning of the health crisis generated by the coronavirus coincided with the beginning of the most important bullish rally of recent times in the price of Bitcoin. Which quickly led most crypto market analysts to establish a relationship between the two events, based on the quality of the BTC as an asset value reserve.
And, according to the thesis generally accepted by much of the crypto community, Bitcoin would be an active store of value. That is, a financial asset whose value does not maintain a direct proportional relationship with the international market. So, given a fall in it, the value of this asset would not be affected, but would remain stable, or even rise, due to the entry of new capitals seeking refuge from the crisis.
Therefore, it was natural that they considered that, by generating high levels of political and economic uncertainty, the advance of the coronavirus led investors worldwide to locate their capitals in the Bitcoin market. Increasing the demand for cryptocurrency, and being the main impetus for the bullish rally in recent weeks.
This would be the opinion of important crypto influencers, including Joe DiPasquale. Who even said that without the coronavirus, the price of Bitcoin could go back to $ 6,800 per BTC. At a time when his rise to $ 10,000 seemed unstoppable.
Even the Forbes magazine columnist, Clem Chambers, said that it would be possible to measure the progress of the coronavirus from the Bitcoin market. Trusting that markets would be much more sensitive to the progress made by this disease than governments and medical institutions.
The dissenting voices
However, not everyone within the community would agree with this analysis. There are very loud voices that question what the coronavirus has really generated, or can continue to generate a significant boost on the price of Bitcoin. A vision that gained strength after the collapse in the price of the cryptoactive a few weeks ago, which ended the bullish rally that had held since January.
Among those who defend this opinion would be Tone Vays, the famous investor and market analyst. For whom, although the coronavirus would play a role in boosting and maintaining the price of Bitcoin. If the health emergency created by this disease continues, the cryptocurrency would suffer significant damage:
“Certainly the coronavirus brings some economic fear, since the fear of the virus spreading is certainly helping to increase the price of Bitcoin but it is not the main cause (…) Instead, if the virus began to spread globally and the People start to really panic, it would actually affect the price of Bitcoin more than help. The reason is that economic activity would decrease and people speculate much less with Bitcoin, ”said Vays.
Even more radical would be CoinDesk analyst Noelle Acheson, for whom Bitcoin would not even have benefited from the coronavirus. On the contrary, cryptocurrency, far from being a valuable asset, would be a risky asset.
Which would put him in a difficult situation before the expansion of the coronavirus. Well, uncertainty in the markets would lead investors to abandon their risk assets first. Among those that Acheson would include the world’s first cryptocurrency.
What is the true relationship between coronavirus and Bitcoin?
At the end of the day, and despite the thorough analysis of investors and crypto influencers. It is reality that will have the last word on the influence of the coronavirus on Bitcoin. And so far, it seems to indicate the existence of an important relationship between the progression of the disease and the cryptocurrency.
Well, if a few days ago the fall in the price of BTC led crypto influencers to wonder if this really constitutes an active reserve of value. To this day, when the price of the cryptocurrency has increased again, it seems that the fall turned out to be only a market readjustment, which does not affect the cryptoactive reserve condition.