Center for Disease Control has confirmed that two people in the US were infected by a coronavirus. Recently, these two people have been in Wuhan, China. As for the other 63 potential victims, they are now being tested. So, the markets dropped dozens of percent, and Bitcoin (BTC) is among the affected assets.

After marking the highest levels in more than two weeks, the prices of Bitcoin plunged on Friday. That event is the product of a stronger dollar improving eurozone economy outlook, and of course, the coronavirus outbreak.

Two days ago, the benchmark sport rate of BTC collapsed by 1.66% to $8,246.14. aside from that, the futures listed on CME fell by 1.49% and traded at $8,245. The crypto’s movement downhill caused a risk of closing this week in the red.

What’s the Current Market Performance of Bitcoin in the Midst of Coronavirus Outbreak?

Some analysts don’t suggest that the leading crypto asset by market capitalization can seriously react to the virus outbreak currently happening in China.

On the other hand, it’s good to note that cryptos, like BTC, are known to have a sensitivity to different geopolitical factors. A couple of days ago, Bitcoin successfully reached a price level close to $9,000. But now, the current price is below $8,400 level.

As other folks remember, the tension between the US and Iran made BTC climb as high as $9,194.99. That price surge happened on January 13^th. However, it failed to continue the surge following the cooling-off of the tension.

Is Bitcoin Starting to Lose Steam Because of Coronavirus Fears?

According to crypto analysts, the pullback of stocks is different from Bitcoin’s losses. The rally of the crypto reached a level close to $9,000. But this price action is still far from its previous all-time highs.

Furthermore, some analysts also mentioned that the crypto still have a big chance to gain well in the near term. That is despite the small losses of the markets, which means that the investors will make a move to take profits.

However, other analysts said that Bitcoins is starting to fail in maintaining its spot as a safe haven asset over the Coronavirus outbreak. That’s partially due to the increased risk-on markets among investors.

The Pressure Brought by Lunar New Year

As always expected by most people, travel, and trade between the US and China should be at high rates. However, due to the coronavirus outbreak, the opposite is what happened. Besides, the economy in China is speculated to suffer as the market stocks gradually falling. In fact, huge US companies like McDonalds and Disney were temporarily shuttered.

Despite the Chinese government’s effort in improving the healthcare provision and imposing a travel ban, the virus continues to spread.

Based on the previous market performances, the Lunar New Year traditionally brings sell pressure for BTC. However, the health issue surrounding China is likely affecting the market though the country still accounts for BTC’s major mining activity.