• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

Coronavirus Fear Shakes Up Markets, But Crypto Remains Unaffected

Tony Spilotro by Tony Spilotro
1 year ago
in Cryptocurrency news, Bitcoin, Ethereum
Reading Time: 3min read
coronavirus crypto bitcoin ethereum
Advertisement

The impact of COVID-19, better known as the coronavirus, has finally started to hit financial markets in a big way, but crypto has remained relatively stable for the normally volatile asset class.

It’s caused the stock market to tank, but safe-haven assets like gold to surge. But what might this mean for Bitcoin and the rest of the crypto market once volatility resumes?

Coronavirus Concerns More Damaging Than Virus Itself

COVID-19, or the coronavirus as its widely known, is having a dramatic effect on the entire globe, from the fear felt by everyday citizens knowing a possible pandemic is on the horizon, to causing financial markets to tumble.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The first signs that the virus could cause markets to crash, was following news that Apple couldn’t keep up with the supply of its flagship iPhone due to closure of production facilities due to the outbreak.

Related Reading | Coronavirus Proved Bitcoin is ‘Flight Asset of Choice’, Says CEO

Apple’s shares corrected by over 10%, causing the largest drop in over six months of growth.

But now that cases of the coronavirus are nearing 80,000 infected, with over 2,450 deaths, and more and more cases popping up outside of China, fears are only growing over the pandemic spiraling out of control.

Fears over the virus spreading and further impacting business operations and the global economy have caused the US stock market to tank.

The Dow Jones dropped by 2.8%, and the NASDAQ fell by 2.9%. Even Tesla, a stock that has gone parabolic in recent weeks, fell another 6.5% amid growing concerns.

Gold, however, the leading flight to safety investors turn to during economic turmoil, has been surging as a result of capital protection.

It takes Bitcoin’s entire crypto market cap to move gold just 3%, so the recent over 7% move suggests that over $350 billion in value entered the gold market over the last two weeks.

Bitcoin is seemingly not reacting to the coronavirus and market shakeup. Gold is ripping, equities are dumping. The bitcoin market never closes – it should have reacted already if it was a flight to safety. That said, it’s still a massive benefit if it remains uncorrelated.

— The Wolf Of All Streets (@scottmelker) February 24, 2020

Stock Market Tanks, Gold Surges, But What About Bitcoin and the Rest of Crypto?

Bitcoin is often considered the digital counterpart to physical gold, sharing many of the same attributes.

Crypto assets like Bitcoin are often designed to be deflationary and feature limited, fixed supplies, much like the previous metal itself does.

Related Reading | Okay Boomer: Millennials Prefer Bitcoin To Gold During Crisis 

However, unlike the stock markets that have been tanking and gold which has been skyrocketing, the crypto market has remained stagnant over the last week after spending all of 2020 surging thus far.

Bitcoin is up well over 50% year to date and other crypto assets like Ethereum are up more than double in the same timeframe.

Will they follow gold and surge further upward over coronavirus fears? Or will they follow the stock market and collapse as more investors derisk?

There’s a chance that crypto and Bitcoin simply does its own thing. According to data, there’s very little correlation between Bitcoin and other markets.

Chart shows prices of US tech stocks, US treasuries, gold and bitcoin during the current round of panic.

Three of these are strongly correlated during times of stress. The fourth does its own thing.

The chart illustrates how unreliable bitcoin correlations with risk assets are. pic.twitter.com/NDhvvBsnex

— Alex Krüger (@krugermacro) February 24, 2020

With the lack of correlation, and such a new, emerging asset class, it is not understood yet how Bitcoin and crypto will ultimately perform in a recession.

They were designed in the wake of a major recession, as a means to avoid them in the future. However, the technology may be too young at this time to serve this purpose.

Only time will tell the truth about what happens to Bitcoin and the rest of the crypto market as coronavirus concerns take hold of the world.

Tags: bitcoincryptoDow JonesethereumgoldNASDAQ
TweetShare70
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a digital media executive and global remote work leader with a decade of content experience and excellent. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

Related Posts

DAFI

How DAFI Protocol Rewards Long-Term Token Holders and Supports Sustainable Project Growth

9 hours ago
bitcoin and Ethereum macro beating

Economist: Ethereum and Bitcoin Look “Bullish” After Withstanding “Macro Beating”

2 days ago
paradox

How Paradox Group Is Helping DeFi

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Bearish Correction Pauses: Focus Remains on Dollar and Yields

2 days ago
Cardano, ADABTC, ADAUSD, ADA, cryptocurrency

Cardano (ADA) Death Cross Spells Worries Despite Bullish “Mary” Fork

2 days ago
oddz

Leading on-Chain Option Trading Protocol Oddz Finance Announces Its Public Distribution IDO on Polkastarter

2 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

EcoCelium is Now Live – Ready to Mark the Next Step in DeFi

March 5, 2021

MXC Exchange Commits to Integrating USDC-SPL on Solana

March 5, 2021

Gambling Exhibition Ukrainian Gaming Week 2021: A Range of Products From Exhibiting Companies, an up-to-Date Program and a Special Offer

March 5, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.