Bitcoin Price and Stocks Lose Strength as Coronavirus Comes to Italy

Bitcoin Price and Stocks Lose Strength as Coronavirus Comes to Italy

| Updated
by Jeff Fawkes · 5 min read
Bitcoin Price and Stocks Lose Strength as Coronavirus Comes to Italy
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The U.S. markets show a significant drop on Monday morning due to the coronavirus fears and uncertainty. People rush to sell the coins, experts now expect Bitcoin price to go below 9,000.

The Dow index, as well as top stocks, S&P 500 and Bitcoin price, have all started losing as coronavirus is conquering new territories. Even more, value vanishes since the virus reaches Italy: one of the world’s biggest travel and trading mecca. The COVID-19 also visits Iran, South Korea, Bahrain, Kuwait and a hefty of other countries. In France, the last man who was ill is doing well now.

During the opening, the Dow felt at more than 1000 points, going right to 27,950 levels. Such a blatant drop constitutes a 3,6% slide off. It is significant compared to the effects the viruses usually apply on markets. This situation also made the Dow’s 2020 gains to disappear in one day – a somewhat scary situation for investment people.

Following Dow, the S&P500 had received a significant hit, going below 3,225. The NASDAQ composite is losing 3,7%. European markets have reacted according to the world trend, with the markets losing 1-3% in stock prices and other assets.

At the same time, gold, silver, and treasuries have received an inflow of investments, with gold hitting a peak of $1,676. Thanks to the supply chains being frozen, the ‘safe haven’ assets receive a significant bump, while the usual stocks fall.

In Italy, there is a strict quarantine in 10 cities already. Press reports at least seven death cases and 152 patients with supposed contamination. Traditional markets already start showing their reaction on coronavirus fears. But the world is not at the brink of collapse… yet.

Bitcoin Price Don’t Keep After Wall Street, Says Jeff Dorman

Jeff Dorman, who is working as the market analyst at Arca Funds, claims that the cryptocurrency market is much slower in terms of reacting to coronavirus than the usual stock market. All because cryptocurrency markets and liquidity providers are not Wall Street players. They do not maintain direct connection with the people and entities who explicitly spread the panic:

“It’s irresponsible for anyone to say that bitcoin is truly a haven. Look at how gold and Treasuries and equities react instantaneously to global fears. Bitcoin and digital assets live outside that workflow. I don’t expect bitcoin to trade as a risk-on or risk-off asset. But over a longer period, anything that’s inflationary, or said another way devalues other currencies, strengthens the purchasing power of bitcoin.”

Many of the cryptocurrency startups care about coronavirus because they have offices. Yet the blockchain has no central governing and gains international support. So, presumably, the crypto industry will receive fewer troubles and generate fewer fears. In case of a quarantine imposed on key offices, blockchains will still work. Compare this to Apple‘s troubles. Chinese people working on phones are obliged to sit at home now. And there is no clear plan for re-visioning the current supply chains.

Alex Kruger Sees Worst Case Scenario for Bitcoin Price

Economist Alex Kruger says that if Bitcoin will reach the price level of $9,000, it will eventually go down fast. The issue is that this price level looks like the best chance for shorts to target and longs to open.

So, in case the coronavirus fears and other significant factors will push on Bitcoin, it could easily tank below 9K:

“Area below 9K is very attractive for shorts to target and longs to open. Excessive leverage has been largely rinsed out. Bigger picture players are still looking at new yearly highs. I still expect higher prices before the halving and think once 10300 breaks should see 11K soon.”

He also notes that the WSJ coronavirus vaccine article and the tweet made by Donald Trump where he claims it’s a good idea to buy some stocks now result in the bullish trend:

He also turned to the situation with the Bitcoin price amid coronavirus.

Tim Draper Remains Bullish, Claims Imminent Rise

At the same time, prominent venture investor Tim Draper says that his bullish $100,000 Bitcoin price prediction is still relevant. Despite the virus, Bitcoin still has a big chance to replace fiat money, according to the investor. Tim Draper noted that people will have to ‘make this switch’:

“I’m still holding to my prediction. I think Bitcoin in 2022 or at the beginning of 2023 will hit $250,000, and that is a big move from where it is here. At some point, people are going to make this switch, and Bitcoin is going to be the big winner.”

Draper also warns the public not to fall in seduction with Warren Buffett‘s words about cryptocurrencies. Since 50% of his entire holdings are banking stocks, not a surprise that Buffett says ‘no’ to crypto. He even claims that ‘you cannot do anything with bitcoin but to sell it to somebody’. As per the usual stocks, bonds, obligations and other valuable papers: what can you do with them? It’s the same situation, you can only sell them to other interested people. Somehow, Buffett is not slashing the usual stocks despite their obvious similarity to cryptocurrencies.

Bitcoin News, Business News, Commodities & Futures, Cryptocurrency News, Indices
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