How COVID-19 Affected The Bitcoin Price: An Overview Of General Situation
The world continues to struggle with the spread of the pandemic, which has become a powerful blow not only for the health system but also daily affects the state of the financial market. Experts trace the relationship between the Bitcoin rate and the statistics of new infections. Is the second wave of COVID-19 will lead to a repeat of “Black Thursday”?
COVID-19 and Bitcoin price swing
On June 27, the price of Bitcoin fell to $8,943. According to cryptanalysts, the reason for this decrease was an increase in the number of infections in the United States. At the background of new infections, traders raised a wave of panic, because everyone remembers Martha’s events when the financial market touched the bottom when new outbreaks of coronavirus were detected.
Despite the concern, the price of Bitcoin grew by 2.11% within 24 hours and rebounded to a level of $9,132. Why did it happen? Experts believe that the price of Bitcoin was able to recover due to information about the reduction in the daily growth of COVID-19 infection in the United States and other regions of the world.
In particular, researchers at Johns Hopkins University June 28 reassured the world with news that the increase in the incidence among the US population and the number of deaths is gradually declining. For example, this trend is visible in the state of Florida, wherein just one day the number of new infections has declined by almost 3,000 cases.
Thomas Lee, the co-founder of Fundstrat Global Advisors, also spoke about positive trends regarding the current distribution dynamics of COVID-19. He said that today there has already been a reduction in deaths by the total number of people who are in hospitals for hospitalization.
“We can already cautiously talk about slowing the spread of COVID-19 in many US states. Statistics are still alarming, but a reduction in coronavirus mortality is a ray of hope for a better world situation.”
Bitcoin and stock market
The spread of the pandemic has contributed to increasing the correlation between Bitcoin and the stock market. We have already witnessed how the stock crash pulled cryptocurrency to the bottom, so many experts are closely watching the movement of the Dow Jones Index. At the time of writing, this indicator is at 1.8%.
Nevertheless, cryptanalysts admit the possibility of a drop in the price of Bitcoin against the background of a possible weakening of American stocks due to the so-called second wave of COVID-19. As experience has shown, today the situation in the global financial market depends on the dynamics of the spread of the pandemic.