Coronavirus drives Bitcoin price higher
It’s likely that we’ll see the price of Bitcoin continue to increase until the coronavirus reaches a peak.
The price of the world’s largest cryptocurrency by market cap gained over 10 per cent in a week and is also up 30 per cent since the end of last year. This makes 2020 the best start to year for Bitcoin in eight years.
Up to now, there have been 17,335 confirmed cases of the coronavirus with a death toll of 362. The epicentre of the virus outbreak is still mainland China, however further cases have since been reported in over 24 countries including the UK, U.S. Japan, Thailand, Spain, Germany and Australia.
The more cases confirmed, the more countries affected and the bigger the impact on traditional financial markets, the more Bitcoin’s price has increased.
As such, it can be reasonably assumed the price of Bitcoin will likely continue to surge until the coronavirus peaks, which could potentially be April or May, according to a research group based in Hong Kong.
The principal reason why investors have been recently piling into Bitcoin is because it is increasingly thought of as a safe-haven asset during times of uncertainty.
Known as ‘digital gold’, Bitcoin shares the same traits as the precious metal, such as it being a store of value, scarce, regarded as inflation-resistant and a hedge against turmoil in traditional markets.
Whilst we’ve seen the coronavirus and ongoing geopolitical tensions emphasising the reputation of cryptocurrencies like Bitcoin as safe havens, they are also key drivers for the reasons why digital currencies are being recognised more and more as the future of money.
These other drivers include the fact they are digital, global and solve real-life problems. Moreover, an increasing number of tech and institutional investors are opting for digital currencies, and with the expansion of the native digital generation, global demographics are also on the side of crypto.
Of course, there be will be ups and downs, as we see in all markets, but I believe Bitcoin’s overall trajectory will continue on an upward path until the coronavirus reaches a peak.