Bitcoin (BTC-USD) has surged under the shock waves throughout the global stock market, concerning the novel Coronavirus.
Investors fear the impact of the Coronavirus for the global economy and stock market.
The Cryptocurrency is an asset that has proven to go up, when investors are nervous. The Coronavirus is spreading globally with a high velocity and it seems like the Bitcoin follows.
Nigel Green, Chief Executive of the financial advisory deVere Group, said: “The ongoing upward trajectory of the price of bitcoin correlates to the spread of the coronavirus.”
The current price of one Bitcoin is ranging around USD 9,300 and is up nearly 10% this week. Since the beginning of 2020, Bitcoin has increased around 30%.
Green added that traders should expect bitcoin’s price to continue to rise until the coronavirus peaks. “The more individual cases that are identified, the more countries around the world that are affected, and the greater the impact on traditional financial markets, the higher the price of bitcoin has jumped.”
But the Coronavirus is not the only happening that is said to contribute to the Cryptocurrency soaring.
“The recent bitcoin rally can be attributed to ongoing economic uncertainties,” said Shaun Djie, Chief Operating Officer of digital token company Digix, to CNN Business.
The CFO of Digix further states that worries about the US-China trade relations, political tensions between Japan and South Korea, as well as Brexit concerns, are also factors that have boosted bitcoin prices.
On the other hand, Matti Greenspan, the founder of the research group Quantum Economics, believes that whatever happens in the stock market, is completely unrelated to the cryptomarket.
Greenspan said: “Crypto is neither acting like a safe haven in the face of the virus, nor is it selling off with the other risk assets. Rather, it remains completely uncorrelated.”