Bitcoin is considered to be an asset that is free of political forces and does not get affected by the traditional market. International investors turn to bitcoin when there is an uncertainty in stock markets and other traditional investment markets, which causes a surge in the price of bitcoin.
Bitcoin takes a fall after the initial surge amid coronavirus outbreak.
The price of the leading cryptocurrency, bitcoin, broke above the $10,000 mark on 9th February and then peaked at $10,474 on 18th February. Since then, the price has plummeted, returning to levels last seen in late January. Currently, bitcoin is changing hands at just above $8,600. Whether the spread of Coronavirus coincided with the initial surge in the price of bitcoin earlier last month or the subsequent fall is open to speculation.
Coronavirus outbreak halts traditional markets all over the world.
The effect of Coronavirus can be seen all over the world as markets continue to report low numbers constantly. Australia’s Chief Medical Officer said that it is no longer possible to prevent new cases coming in. The death toll in Iran reached 54, the most outside of China. The number of confirmed cases in Italy jumped to 1,694. The mysterious virus has infected 86,000 people around the world and has caused more than 2,900 deaths.
Peter Tchir wrote on Forbes that the Chinese economy might have deteriorated so much that local citizens might be selling off their bitcoins to purchase goods and services because of travel restrictions and quarantines.