Several countries are reporting new coronavirus victims daily, the death toll in China due to this mysterious virus reached 2,715. The stock markets in the US plunged over 7.8%. The leading cryptocurrency has failed to prove itself as the safe heaven as the price of bitcoin slumped down to $9,000.
Bitcoin fails to act as a safe haven.
Over the last few years, bitcoin has established itself as a safe haven because of its properties. The decentralized cryptocurrency is not affected by political forces and the traditional financial system, which makes it a safe bet in the time of recession. But the recent downward rally has raised some questions about this plausible theory. On the other hand, the price of gold continues to sky-rocket amid coronavirus impact.
Coronavirus epidemic spreads to 30 countries.
The Coronavirus that was first reported in the Chinese cities of Wuhan has now spread to 30 countries, including South Korea, Italy, and parts of the Middle East. Gold rose 1.7 percent to $1,676.50 a troy ounce, the highest in seven years, which implies that gold is still the most trusted asset in times of recession. In a report last week, the Norwegian analysis firm Arcane Research revealed that bitcoin’s correlation with gold had weakened since the start of this year.
