How coronavirus affects bitcoin

The global economy continues to be overwhelmed by the rapidly spreadingcoronavirus infection. To date, the number of patients with Wuhan pneumonia has exceeded 25 thousand, more than 450 people have died. Despite all the efforts of the Chinese authorities, the virus still cannot be localized. The pandemic continues.

On the eve of the Chinese authorities decidedsuspend the work of a casino in the Chinese province of Macau, which is the largest gambling center in the world. In accordance with the order, gambling establishments will be closed for 15 days. The decision to suspend the casino from February 5 was a new blow to the global capital of the gambling business, which is trying to recover after the biggest drop in revenue since 2015. A pause in work will be the longest in the history of the industry and the second in a row: in 2018, casinos closed for 33 hours due to the typhoon. By such measures, the Chinese authorities are trying to slow down the spread of the virus, the pace of which is significantly increasing in a crowded environment. It is worth noting that panic is observed not only in society, but also in financial markets, which logically supports the demand for defensive assets.

Dynamics of BTC, recovering from $ 7150 to $ 9380since the beginning of 2020, it indicates that the cryptocurrency market amid the spread of the virus is also considered by traders as a protective sector. Given that fiat money is rapidly depreciating due to investors fleeing currency risk, Bitcoin again proves to the public that interest in it with every manifestation of uncertainty, geopolitical tensions, and world cataclysm only increases. In other words, BTC is increasingly perceived by traders as another protective asset.

Today, uncertainty in the market supportsthe frightening scale of the spread of the viral infection, which gives Bitcoin a fundamental reason to continue to grow. The advantage of Bitcoin is that today there are no assets in the world with a similar level of liquidity, assets that can be easily bought or sold in any economic situation, regardless of regional currency and customs control rules. Another positive characteristic of Bitcoin is the fact that it will not suffer in any way from attempts by world regulators to neutralize the global economic downturn. According to preliminary data, the new pneumonia virus will slow China's growth rate in the first quarter of 2020 from 6% to 3.8%. The global economic decline could be 1.5-2%. In such conditions, the Central Bank will be forced to return to a policy of low interest rates, which will inevitably lead to the devaluation of traditional currencies. In this scenario, those assets that are not exposed to the risk of inflation will look better than others. Bitcoin, which has a non-inflationary nature and limited emission, is among them. Considering the above, fixing BTCUSD above $10,000 is a matter of the very near future.

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