The World Health Organization has declared Coronavirus as a pandemic, as it spreads across the globe. It is becoming a barrier in global, political, and economic development. The supporters of Bitcoin (virtual currency) and other cryptocurrencies have always insisted that one of their main advantages is that they are safe in times of crisis.
Besides, analysts also propose that the Coronavirus effect could lead to rising in Bitcoin price since the funds are apparently used as a guard against financial risk. Unfortunately, the coronavirus outbreak has provided an opportunity to test this statement.
However, now the basic concern is whether the Bitcoin’s current drop and bearishness are strongly linked with the coronavirus. Indeed, the virus has affected Bitcoin, but it was somewhere within the expectations. The community also suggested that the Coronavirus effect on crypto trails and mining processes are related to each other.
“We’ve seen de-risking across all asset markets,” said Jamie Farquhar, portfolio manager at London-based crypto firm NKB. “Bitcoin is certainly not immune to that.”
It is big speculation as there isn’t much proof connecting the decline in mining to a drop in Bitcoin demand. In reality, it is uncertain how mining closures will impact bitcoin. However, there’s still a solid chance of Coronavirus decreasing the demand for cryptocurrency as the crowd begins to dump its cash to prepare for an epidemic.
Now, Ethereum, Litecoin, Ripple, and Bitcoin Cash, have all followed Bitcoin and are worth half as compared to their maximum in February.
This pleads the questions of why and what happens next.