Center for Disease Control has confirmed that two people in the USwere 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 affectedassets.
After marking the highest levels in more than two weeks, the prices ofBitcoin plunged on Friday. That event is the product of a stronger dollarimproving 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 tradedat $8,245. The crypto’s movement downhill caused a risk of closing this week inthe red.
Some analysts don’t suggest that the leading crypto asset by marketcapitalization can seriously react to the virus outbreak currently happening inChina.
On the other hand, it’s good to note that cryptos, like BTC, are knownto have a sensitivity to different geopolitical factors. A couple of days ago,Bitcoin successfully reached a price level close to $9,000. But now, thecurrent price is below $8,400 level.
As other folks remember, the tension between the US and Iran made BTCclimb as high as $9,194.99. That price surge happened on January 13th.However, it failed to continue the surge following the cooling-off of thetension.
Is Bitcoin Starting to Lose Steam Because of Coronavirus Fears?
According to crypto analysts, the pullback of stocks is different fromBitcoin’s losses. The rally of the crypto reached a level close to $9,000. Butthis price action is still far from its previous all-time highs.
Furthermore, some analysts also mentioned that the crypto still have abig chance to gain well in the near term. That is despite the small losses ofthe markets, which means that the investors will make a move to take profits.
However, other analysts said that Bitcoins is starting to fail inmaintaining its spot as a safe haven asset over the Coronavirus outbreak.That’s partially due to the increased risk-on markets among investors.
As always expected by most people, travel, and trade between the USand China should be at high rates. However, due to the coronavirus outbreak,the opposite is what happened. Besides, the economy in China is speculated tosuffer as the market stocks gradually falling. In fact, huge US companies likeMcDonalds and Disney were temporarily shuttered.
Despite the Chinese government’s effort in improving the healthcareprovision and imposing a travel ban, the virus continues to spread.
Based on the previous market performances, the Lunar New Yeartraditionally brings sell pressure for BTC. However, the health issuesurrounding China is likely affecting the market though the country stillaccounts for BTC’s major mining activity.
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