Home Bitcoin Coronavirus/Chinese New Year: Bitcoin suffers, plunges 6%

Coronavirus/Chinese New Year: Bitcoin suffers, plunges 6%

Owing to the current world panic of the recent Coronavirus that hit China, and the celebration of the Chinese New Year, both events have managed to plunge the value of Bitcoin by 6%. According to analysts, Bitcoin price data alongside Chinese stocks’ performance on Jan. 24, social media resource Light said a slump in performance had spread to cryptocurrency.

It has also been noticed in the past few days that Bitcoin has been correlated with equity stock. The relationship could also be a mirror of what is perceived as an aftermath of another global event,  the Iran crisis earlier this month.

“China coronavirus-driven risk-off blanketing Chinese equities… and Bitcoin. Iran correlation, now Chinese equities,” Light commented.

The Coronavirus has continued to spread across China even with all the authorities attempt to contain it with stringent measures. The Chinese government imposed a travel ban on travelers and improved healthcare provision, still, it has not reduced.

The Crypto lost 6% in the past seven days and currently trading at $8,300. The virus is said to come at a sensitive time as it coincides with Chinese New Year traditionally creating sell pressure for Bitcoin.

Analysts Alex Kruger who compiled figures circulating on Twitter show that in the run-up to the celebrations, Bitcoin returns often turn out negative.

Last year, Bitcoin averaged around -0.2% losses for the week prior, but Krueger himself appeared not disturbed by the results. He said “nothing special.”

Reportedly, critics have protested against the theory that Bitcoin price action is directly influenced by geopolitical or other world events.  However, China still impacts the crypto market obviously, against the backdrop of a blanket crypto trading ban imposed by Beijing in 2017. The country still accounts for the majority of Bitcoin mining activity.

About Coronavirus

Coronaviruses are a large family of viruses that can cause respiratory illnesses such as the common cold, according to the Centers for Disease Control and Prevention (CDC). Most people get infected with coronaviruses at one point in their lives, but symptoms are typically mild to moderate.

The virus has been spreading over in China and has now reached several other countries. As the number of confirmed cases and deaths continue to rise, health officials are working on all fronts to learn more about the virus and put measure into place to curtail its spread.

Featured Image by BeinCrypto

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Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism

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