World markets are in a fever amid news about the coronavirus.
Stocks and oil are getting cheaper, gold is getting more expensive because of the spread of coronavirus in the world.
On Monday, February 24, stock prices and oil prices on world markets dropped, while gold prices rose. This is how investors react to news about the spread of coronavirus and rising mortality in Italy and the Middle East.
If we talk about the impact of Intermarket asset relationships, one of the main drivers for Bitcoin is the price of gold and the Chinese Yuan, the correlation of prices with which is obvious.
The second factor affecting the exchange rate is the difficulty of Bitcoin-mining. Again, assuming the most negative scenario, a pandemic, it can lead to a halt or shutdown of mining farms, most of which are located in China.
Rather, Bitcoin is expected to rise after a local decline amid falling mining complexity. However, how much BTC will rise in price, we can only say by making sure that the epidemic has gained national scales.
There is no consensus among experts about how the COVID-19 will affect the Bitcoin exchange rate.
However, even those experts who believe that the disease can affect the main digital coin explain that this will happen only if the outbreak develops into a full-fledged epidemic.
On the first day of the week, stock markets in the United States and Europe quickly fell, for example, as traders‘ fears intensified on the pretext of the continued spread of COVID-19, still popular as coronavirus.
Earlier on that day, the Italian government declared a quarantine in 10 towns, for instance, as the number of people infected with a highly infectious microbe increased to 152, and 7 people have died today.
The initial danger of COVID-19 to the mass markets seems to have decreased because China’s frisky intervention and tough national quarantines painted a picture of the fact that a mass pandemic was actually avoided.
COVID-19 is currently present in 30 nations, and a recent outbreak in Italy, along with the spread of the microbe in Iran, South Korea, Bahrain and Kuwait in the last few months, has forced traders and the government to come to terms with the likelihood of a shift for the worse.
At the opening of trading, the Dow Jones Industrial Average dropped rapidly, dropping to 1031 to 27,960.80. A sharp decrease of 3.56% is not the best adjustment that the share market has seen since December and February 2018. The rollback also destroyed all the benefits that the Dow achieved in 2020.
The S & P 500 took a similar hit, falling 3.4% to 3225.89, while the Nasdaq Composite fell 3.7% to 9.221. Markets across Europe are still quickly adjusted.
The growing number of specialists is afraid, that a bold rollback can now freeze the start of a more robust adjustment by 10-15%, because it is assumed that global quarantine measures in many large Chinese cities will negatively affect markets and international trade.
The main CNBC Mad Money, Jim Kramer, actually explained that supplies are “too toxic to touch,” for example, as South American firms are “too dependent” on manufacturing in China. Kramer called for cautiousness, considering the current pullback as a probability of a fall, and said:
“I have to spill the beans, that the greatest risk from an outbreak of coronavirus is associated with interrupted supply chains and a concomitant slowdown in business worldwide.”
The bitcoins price falls but a gold and silver prices are skyrocketing
It is curious, that as markets corrected, Bitcoin (BTC) cost remained within the spectrum in the direction of the day, but in the end it collapsed by 3.28% to $ 9,473 at noon in the United States.
Almost all Bitcoin adherents believe, that digital property is inversely proportional to classical markets and it is often suggested that traders themselves will resort to it as a defense against volatility in classical markets, but now this was not so.
Despite the 3.28% rollback, at the time of publication, Bitcoin continued to trade in the range from $ 9,400 to $ 9,900. Because the cost incurred minor losses, the price of gold rose by almost 2%, reaching a fresh 7-year high at $ 1676.60, and silver followed with a similar rise.
Crypto investors and specialists will most likely be interested in why Bitcoin has not followed the gold example now, because the crypto asset is often referred to as ‘digital gold.”
Previously, in cases of volatility in classical markets and geopolitical volatility, the value of Bitcoin showed an important upsurge. In 2019, digital assets quickly increased as a result of tensions around the U.S.-China trade struggle negatively impacted the markets and at the beginning of this year, when traders were afraid that the USA was actually fighting the border with Iran.
Traders will now begin to see if there will be a take-off during the opening of stock markets around the world on Tuesday, and crypto investors will most likely need to cross their fingers in the hope of Bitcoin’s price afterward of any short-term recovery by classic markets.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.