Coronavirus and negative events affect the Bitcoin market


The spreading of Coronavirus in China revealed a new pattern about trading in relation to stocks.
This epidemic virus slowed down Chinese and international stocks, but not so much Bitcoin prices as cryptocurrencies try to walk a different path in reacting to global events and news.
No, it did not behave the same as gold.
Instead, it became more attractive in this period of instability forcing market analysts and media voices to place a high emphasis on the store of value narrative.
The crisis from Iran caused the first rally of the coin above $9,000. Now, the coronavirus events are showing another predisposition of Bitcoin to rally.
The leading crypto coin is starting to behave in ways that offset the risk of dramatic events, being used until now in multiple examples of hyperinflation.
Therefore, we may very easily emphasize that Bitcoin has become an alternative tool of payment and a digital store of value in troubled times and more and more people start to recognize this reality.
This means that it may be following another trading pattern, reacting to “unicorn” events, as crypto market observer Alex Kruger suggested. But while Bitcoin doesn’t have a direct relationship to stocks, it can still find ways to push the crypto market prices higher.
Until now, Bitcoin has bypassed the January lows and the recent appreciation above $9,000 created expectations of further appreciation in February, but you can never know when and how the crypto market prices would react. It is also possible that Bitcoin collapses on sudden news.
The unexpected growth rate of Bitcoin’s price on the coronavirus news has implications for the futures markets, but since BTC is not behaving in a predictable manner, this may lead to the risk of fast liquidations so traders and investors must always remain in alert on the sudden changes that may appear.

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