HOW THE CORONAVIRUS COULD TRIGGER AN EXPLOSIVE PRICE CHANGE IN CRYPTO

[Mila]

Intro

The Coronavirus outbreak has caused an international crisis and health officials are working around the clock to stymie the spread of the disease. In response to the virus, we’ve seen some major fluctuations in fiat, with most currencies experiencing a steady decline.

Cryptocurrency on the other hand seems to be flourishing in the face of economic uncertainty.

The Fall of Traditional Currency

Historically, the price of cryptocurrencies such as Bitcoin have increased whenever investors start to panic. Concern about the fall of government backed currencies often coincide with investments in cryptocurrency. In the last week, the price of Bitcoin rose 10% which certainly isn’t a coincidence. Cryptocurrency is extremely reactionary, which actually adds to its wealth potential.

Thanks to the birth of blockchain and currencies like Ethereum and Ripple, investors have access to alternative means to secure their capital. Sure, cryptocurrency can be volatile, and events like the Coronavirus can drive crazy spikes and drops in prices. But, unlike traditional currency, traders can actually make money off of price inconsistencies.

There are a plethora of crypto exchanges out there and sometimes there are slight variations in prices on each exchange. When this happens, the most discerning investors will often buy a cheaper currency from one exchange and sell it for more on another. This practice is called arbitrage and can be extremely lucrative. Check out our post on earning on crypto volatility for more on how to profit in the face of price uncertainty.

What if the Price of Crypto Falls?

With the Coronavirus crisis looming and the price of crypto rising, it is probably tempting to invest big now. But, according to many investors this is just a temporary phase. William Suberg of Cointelegraph says, “panicked investors will likely reduce speculative activity, meaning less interest in non-traditional assets such as Bitcoin.” So although we’ve seen impressive bullish gains in crypto in the last week, in the words of the wise Isaac Newton, “what comes up must come down.”

How to Earn Big in the Face of Global Uncertainty

Don’t be fooled by a temporary bullish cryptomarket. Instead play the waiting game and buy when prices are low or before investors start to panic and invest in crypto to make the biggest profits.

The most percipient traders are patient and strategic when it comes to crypto investing. They choose exchanges like StormGain that pay 10% APR on your account balance (for accounts with a value of $100- $50,000USD) and have a multiplier of up to 150x increasing your potential profit and allowing you to take larger positions. StormGain is popular among novice and experienced traders alike thanks to the quick registration process, user friendly interface, and extremely low trading fees.

Crypto trading can be risky, and market volatility is certain, so choosing a profitable exchange like StormGain will help you make smarter investments and profit big.

[Alcor]

I do not think that coronavirus will significantly affect the price of cryptocurrency. The focus of this virus is located in China, where more than forty thousand infected with coronavirus and more than a thousand died from it are registered. This virus began to spread during the Chinese New Year celebrations, and the country's government called on its citizens to be less in public places. Therefore, spending money, and therefore cryptocurrency, should have been less. This should positively affect the price of bitcoin and other cryptocurrencies.

[masterrex]

I don't get the whole idea why the cryptocurrency price boom was associated with the recent coronavirus or Covid-19 epidemic across china I believe that there is no positive outcome in any disaster. the epidemic was considered a disaster because it was already claimed a thousand lives so for me its nothing but only pure speculation.

[Delgboke]

Does it mean that coronavirus has any effect on the digital world apart from the real world we're people already affected by the virus, unless the people that are trading cryptocurrency are affected by the coronavirus, all I know is that corona virus has no effect on the price of cryptocurrency.

[rekt]

Only thing i can see it's affecting is China trade, because people are illogical and now avoid anything Chinese made. We already have flu epidemics in Europe, this is just another one.

[trauchot]

It is difficult to say, of course, but a lot of news are related to the fact that coronavirus somehow affects the cryptocurrency market and many experts say that because of the coronavirus, the cryptocurrency market is also growing, but I myself have a neutral opinion.

[Coin63@]

Corona virus already have victimed in China which is becoming very dangerous to control. I think it will have a bad effect on cryptocurrencies markets because many investors from China are fear from corona virus. They are busy to control their victims and manage their whole lives. Actually if corona damage the investors and contributors. I think corona virus will hamper whole economic development.

[LogiC]

Corona virus already have victimed in China which is becoming very dangerous to control. I think it will have a bad effect on cryptocurrencies markets because many investors from China are fear from corona virus. They are busy to control their victims and manage their whole lives. Actually if corona damage the investors and contributors. I think corona virus will hamper whole economic development.

That's a silly idea. It doesnt matter whether there is an active virus on their premises. As if Government will stop deploying other personnel for blockchain and crypto investment. I know the market will always be volatile so with or without the virus its still be an up and down scenario.

[vaysar]

If the coronavirus epidemic were for example in Bangladesh, then this would not have affected cryptocurrency rates, but this epidemic happened in China, where there are factories for the production of ASIC equipment and 70% of bitcoin mining. The authorities extended the New Year holidays, which led to a two-week downtime of production, which has already affected the delay in deliveries.

[Nestle]

I'm not too sure if the corona virus can affect the crypto market. I know that China is the biggest enthusiast and user of crypto, but if only something like this the price of crypto dropped could not be explained. Only the issue of the SEC or hackers is affecting the price of crypto for now.

[Luckyperson21]

I wonder. Why are all problems in the real world related to digital currencies? There are times when it's not related. Viruses and digital currencies? Are you healthy? That has nothing to do. Bitcoin price increases are not triggered by viruses.

[Cryptoz]

I think it is no sense to hope the virus issue affecting the price move. This is a weak reason, you must have other reasons for the price moves. Halving or Bitcoin upgrade is more reasonable than the Corona virus. So, please make it more sense, then we will have a better discussion. 

[Senin]

We see that in connection with the outbreak of the coronavirus epidemic, all stock markets, as well as the cryptocurrency market, have fallen quite significantly. Most likely, this is simply due to a decrease in trading activity in the markets. More pressing problems appeared in people; they are related to their life and general security. Therefore, we can assume that the hope of an increase in the cryptocurrency market at this time did not materialize.