Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
BTC price has increased significantly over the last days. The current Bitcoin pump is expected to continue as fear and uncertainty are increasing while the number of confirmed coronavirus cases is growing.
Bitcoin (BTC) is having a field day as it seems to be enjoying the outbreak of the deadly coronavirus. As fear and uncertainty because of the virus continue to spread, the adverse effects are being felt by several businesses. The world’s financial markets also suffered a crash and even oil stocks are continuously crashing. However, the Bitcoin network is experiencing the direct opposite.
Bitcoin and the Coronavirus
The relationship between Bitcoin and the coronavirus is a very interesting one. Yesterday, Bitcoin price rose to $9,300, representing a 10% jump this week alone. It has also jumped at least 30% since the year started, confirming the asset’s best new-year performance in about 8 years. The major factor, many agree, is the coronavirus.
The number of confirmed coronavirus cases is almost 20,500. Other details of the spread show that the virus has reached 27 countries with a total of 425 deaths. Yesterday, Hong Kong announced its first coronavirus death and as the virus spreads, health officials predict more deaths.
General uncertainty and fear almost always pump Bitcoin and the current situation is simply a rehash of something that has happened a million times before.
Coronavirus Confirms Bitcoin’s Safe-Haven Status
The effect of the coronavirus on the world’s financial markets is unignorable. Anytime something seems to disrupt the normal flow of the markets, fear starts to grip investors who search for a safe haven. For many reasons, investors in these cases can no longer trust the financial markets.
Major financial consultancy company deVere Group’s CEO Nigel Green highlights this in a recent publication. Green says that as long as there are more cases and the virus keeps spreading to other countries with unfavorable effects on financial markets, the price of Bitcoin will keep increasing.
Green has also added that this helps Bitcoin’s status as a safe haven, specifying that the current increase will continue until the virus is curbed. He noted:
“It can be reasonably assumed the price of Bitcoin will likely continue to surge until the coronavirus peaks, which could potentially be April or May, according to a research group based in Hong Kong. The principal reason why investors have been recently piling into Bitcoin is because it is increasingly thought of as a safe-haven asset during times of uncertainty.”
Coronavirus Epidemic Should Improve
According to Chinese National Health Commission’s deputy director of medical affairs and hospital administration Jiao Yahui, things will get better. Yahui strongly believes that the government’s efforts in curbing the virus will soon be seen.
She explained that a shortage of hospital beds caused the situation to deteriorate in the beginning. This made it very difficult for the government to properly take care of the patients.
Now, China has completed a hospital building for coronavirus cases. Also, another hospital strictly for infected people will be ready in a few days. With these, China expects to make significant progress soon.