How Coronavirus is affecting cryptocurrencies and financial markets all over the world

Decentralized cryptocurrencies like bitcoin had established themselves as "safe haven" in times of crisis like the one we are facing right now. But bitcoin failed to prove its status as safe haven as it witnessed one of the worst days in its history on Thursday.

Coronavirus outbreak has destabilized lives and businesses all over the world as governments continue to work to contain the novel coronavirus. So far, more than 5,000 people have died of the coronavirus, and over 132,000 have been tested positive with the virus. Dow Jones witnessed its worst fall since 1987 on Thursday that coincided with the fall in the price of bitcoin. 

 

Bitcoin is not immune to financial market woes. 

The leading cryptocurrency bitcoin failed to prove its status of a safe haven during the novel virus outbreak as the price tumbled to historic lows. However, it is difficult to measure the exact correlation between the bitcoin price and the financial market woes triggered by the coronavirus outbreak. Dow Jones witnessed its worst fall since 1987 on Thursday when the US President Donald Trump announced a thirty-day travel ban on Europe.

 

Bitcoin continues to hover around $5,500

The leading cryptocurrency, bitcoin, on Thursday caught investors off guard as the price fell down to as low as $3,700 before making a quick recovery. At the time of writing, bitcoin is changing hands at just below $5,500, up 6.1% in the last 24 hours. In order for bitcoin to reach a true safe-haven status, favorable crypto regulations are required all around the world. 

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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