Fyggex

Local crypto news

Affiliate

Affiliate

News The World

Reasons Behind Bitcoins Corona Impact!

Image: Romanakr

For a long while, it seemed as the Coronavirus (covid-19) caused a global financial crisis that would not impact cryptocurrencies. With past turbulence’s cryptocurrencies have been considered by some as immune, living their own life independent of “real economics” or financial system speculations in the same manner as stocks, bonds and obligations. In other words, cryptocurrencies do not necessarily follow trends of the economy as a whole. Current 2020 winter has however impacted financial assets across the board, as we earlier reported about Gold price. (Click the link)

Cash is King

Reports at CNBC, highlighted that while Bitcoin went on -50 % levels, also the world second largest digital currency, ethereum, fell 46% this week as well as others had the same volatility. Cryptocurrency called XRP lost nearly 40% of its value at the same time.  CNBC reporter Kate Rooney got commentary from Joe DiPasquale, who is the CEO of crypto investment firm BitBull Capital. 

Joe DiPasquale: “ Recent price action is primarily a result of the coronavirus outbreak affecting global markets and driving investors towards the safety of cash”

Table. How did the Corona virus impact virtual Crypto currencies?

Reference currency, below the table is in Euros. Observation time 10th DEC. 2019 to March 22

SOURCES: Via Google search, Data provided by Morningstar for Currency and Coinbase for Cryptocurrency


In Sweden the online version of the magazine Realtid, reporter Sverker Brundin managed to interview locally famous Cryptofund manager Eric Walls comments about the Bitcoin crash. Eri Walls explained Cryptocurrencies are very volatile, generally speaking 5X (times) more than shares, but they can still perform better. When addressed about perceived “safe haven” -status of Bitcoin, Eric Wall continued that despite historical low correlation between cryptocurrencies and other asset classes, now when even Gold is falling, people try to avoid volatility. 

Visualization below shows how Bitcoin value fluctuation dominates the most known cryptocurrency market 

A picture containing screenshot

Description automatically generated

Is this time different? At Fyggex.com we shall update the situation as it evolves, but to summarize above, currently many investors are moving assets away from volatility and Cryptocurrencies have always been more volatile than traditional currencies. 

Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.

Sources:

www.cnbc.com/2020/03/13/bitcoin-loses-half-of-its-value-in-two-day-plunge.html

www.realtid.se/bitcoin-dyker-vi-koper-nu-nar-priserna-faller

Google search, Data provided by Morningstar for Currency and Coinbase for Cryptocurrency

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *