Does the Coronavirus (Covid-19) make BTC to rise?

[pixie85]

These days most news about Covid-19 and  crypto market have  nose-diving this week, most important question is crypto markets will recover or continue on a downward spiral next week

I cant really see on whats the correlation of this epidemic towards crypto market price specially with BTC.Towards my own view i dont really apply or imply these sentiments to my price analysis.
I would rather try to look on Technical analysis which is more worth to try on rather than relying on news which doesnt really give out relevant connection.Out of those TA's above
We are already on 8500 support and its either would hold up or there would be an another break down on this upcoming new week.

The only correlation is between the virus and s&p500 which took a dive because there was a fear of Chinese market s shutting down. Most of the products we use in our houses are made in China so it's a problem for big companies with production in China. Almost all electronic appliances are made there.

Bitcoin reacted to that fear as well because it's a currency. If normal stores shut down those that offer their products for Bitcoins will too.

[exstasie]

Totally wrong!
If these are not related then explain me how exactly the downtrend started in the same phase of time that Corona was started to get spread?

Markets often move together: https://www.wsj.com/articles/there-are-few-places-to-hide-when-markets-all-move-together-11566993602

It's not just correlated markets either, so it's not all about financial cause and effect. There are global psychological and even more esoteric factors at play. When major panic strikes (as in a financial crisis), it tends to hit everything at once. That's what we saw in 2008.

There are two very good reasons why BTCUSD corrected off the $10,000s:

Remember how crazy the funding rate and futures premiums were a week back or so. Obviously a correction had to happen.

Yup, and there's another obvious reason why the market corrected:

Corona virus induced panic in the stock markets may have provided an additional factor, but I wouldn't consider it the primary cause.

If the stock market keeps crashing at this rate, it will probably signify a major incoming global recession. That means job losses and outflows from high-risk investment assets. This would be a bearish factor for BTC.

The DOW and S&P 500 mini futures are about to open. I'm excited to see what they have to say about the market's expectations for next week.

[rdluffy]

It's hard to predict anything in this scenario we are living, because no one know what's going to happen, everyone is cautious right now, every person on earth should worry because we can have a big financial crisis in a few days/weeks, it's not conspiration, but we are discussing this for some time, and now with Coronavirus hitting the world so hard, there will be consequences for sure
Our entire world depends on China, and if they don't handle this problem quickly, people will going to suffer not only financially but physically too

And predicts about BTC in this specific scenario with Coronavirus is even harder, people can adopt BTC to be more secure, but what about the others who will prefer to have fiat cash to buy essential stuff for living?

[btc_angela]

I thought that BTC is due to a correction that's why we have seen it tumbled in the previous week. Might be just coincidence that it goes down when there is a latest scare in Italy that's why some have speculated that it is due to the coronavirus scare. It could be a factor as other market also had a major pullback but then again, bitcoin is steady at $8500 so we are still good. $10k will be breach again, we just have to be patience and let this scare settle down a bit.

[Oasisman]

I thought that BTC is due to a correction that's why we have seen it tumbled in the previous week. Might be just coincidence that it goes down when there is a latest scare in Italy that's why some have speculated that it is due to the coronavirus scare. It could be a factor as other market also had a major pullback but then again, bitcoin is steady at $8500 so we are still good. $10k will be breach again, we just have to be patience and let this scare settle down a bit.

The recent drop of Bitcoin's price may not have direct correlation with the corona virus, but It's somehow affecting it a slower phase which may not be noticed by the people. Obviously the stock are falling since some if not most of the production from the supply chain came from China.
Bitcoin might be holding in a $8,500 level maybe because of the block halving hype counteracting the global pandemic issue.

[adaseb]

This isn't really that difficult to correlate. Just go to Tradingview and load a BTCUSD daily chart and click the + button to compare to some stock indicies like the Dow 30 or SP500. Plot both and what do you see?

Basically it looks like the 2 aren't correlated what so ever in the weekly charts. Basically one is trading sideways or they are both positively or negatively correlated. Now plot a 4H chart and what do you see? Around Feb 12th both had a local top, and BTC started to drop while DOW traded sideways until last week of Febraury when both of them just started tanking together.

My conclusion is that there is no correlation between the two.

[lienfaye]

This virus started last year and that time the market is still in recovery phase. We saw the market turn better early this year then currently had a correction but why we connect these situations in covid-19?

I think people are just looking for an event on why this is happening in the market. But the fact is that's how the market works, it's unpredictable.

[fabiorem]

https://www.zerohedge.com/markets/coronageddon-can-minsky-moment-be-avoided

If bitcoin is aligned with the stock market, it will fall.
If not, it will go up, as a hedge against it.

[keystroke]

Central banks are gearing up for a coordinated rate cut.

https://www.marketwatch.com/story/goldman-economists-expect-fed-to-cut-rates-soon-to-head-off-impact-of-outbreak-2020-03-01?mod=home-page

[angell134]

I cant really see on whats the correlation of this epidemic towards crypto market price specially with BTC.Towards my own view i dont really apply or imply these sentiments to my price analysis.
I would rather try to look on Technical analysis which is more worth to try on rather than relying on news which doesnt really give out relevant connection.Out of those TA's above
We are already on 8500 support and its either would hold up or there would be an another break down on this upcoming new week.

Fundamental analysis cannot be ignored because it gives a better view of the future and has also been in a downward trend in bitcoin technical analysis.
and i yesterday we saw suport line of btc

[angell134]

And don't you think that every time Bitcoin suddenly goes up like what it did early this year isn't overwhelming? Our market is always moving in the extremes as compared to other markets we have, that even if we are consolidating we are still moving around 4-5% daily. If you aren't used to this price movements then you aren't still suited to be in this market or at least be prepared for the nect price movements of Bitcoin.  Just keep in mind what I said earlier, if you thought that this price movement was “overwhelming” because it has something to do with the Coronavirus then you are wrong as BTC was bound to correct everytime it suddenly goes up.

I believe what you are saying because there is a need for price correction in the market for the uptrend and this is not the first time I have seen this bitcoin price fluctuation. With these interpretations, bitcoin has grown well in the new year. What I am looking for , this fundamentals to drive the growth and popularity of this market.

[angell134]

It's hard to predict anything in this scenario we are living, because no one know what's going to happen, everyone is cautious right now, every person on earth should worry because we can have a big financial crisis in a few days/weeks, it's not conspiration, but we are discussing this for some time, and now with Coronavirus hitting the world so hard, there will be consequences for sure
Our entire world depends on China, and if they don't handle this problem quickly, people will going to suffer not only financially but physically too

And predicts about BTC in this specific scenario with Coronavirus is even harder, people can adopt BTC to be more secure, but what about the others who will prefer to have fiat cash to buy essential stuff for living?

The trend is not certain, but our team predicts that the number of people with coronavirus will be reduced until the end of the summer, and hopefully people will use a crypto to pay.

[TheAndy500]

The only effect that coronavirus can have on cryptocurrencies, in my view, is that investors will withdraw funds from stock exchanges and look for other investments. Certainly some of the money withdrawn from classic exchanges will go to the cryptocurrency market, but I do not expect any major price increases. In my opinion, we should expect further declines by the time of halving.

[angell134]

I thought that BTC is due to a correction that's why we have seen it tumbled in the previous week. Might be just coincidence that it goes down when there is a latest scare in Italy that's why some have speculated that it is due to the coronavirus scare. It could be a factor as other market also had a major pullback but then again, bitcoin is steady at $8500 so we are still good. $10k will be breach again, we just have to be patience and let this scare settle down a bit.

I agree with you that Bitcoin has shown resistance, there is nothing to fear about it because Crypto doesn't need to be disinfected.

[TheAndy500]

skip

skip

skip

I see you are a new user, so you may not know it. When you answer several users in the same thread, do it in one post. If you want to clearly show that these are different statements, then you can separate them, for example by using this simple code:

Code:

[hr]

It create line like this:


Writing three posts one below the other, even if they relate to something else, could be considered as spam.

[angell134]

I see you are a new user, so you may not know it. When you answer several users in the same thread, do it in one post. If you want to clearly show that these are different statements, then you can separate them, for example by using this simple code:

Writing three posts one below the other, even if they relate to something else, could be considered as spam.

Thanks for the good advice

[exstasie]

This isn't really that difficult to correlate. Just go to Tradingview and load a BTCUSD daily chart and click the + button to compare to some stock indicies like the Dow 30 or SP500. Plot both and what do you see?

Basically it looks like the 2 aren't correlated what so ever in the weekly charts.

No direct correlation, that's true. It's not like AUD and gold, whose every moves are correlated because gold mining is a huge part of the Australian economy.

That doesn't mean a financial crisis or stock market crash (not that I necessarily think the corona virus will cause that) would have no effect. Chances are it would spill over into all markets. Investors panicking out of risky assets and into safe havens like treasuries would have a tangible effect on BTC, which even Wall Street institutions are trading now. https://www.investopedia.com/terms/r/risk-on-risk-off.asp

Investors' appetites for risk rise and fall over time. At times, investors are more likely to invest in higher-risk instruments than during other periods, such as during the 2009 economic recovery period. The 2008 financial crisis was considered a risk-off year, when investors attempted to reduce risk by selling existing risky positions and moving money to either cash positions or low/no-risk positions, such as U.S. Treasury bonds.

If recession kicks in too, the job losses and lack of wage growth are going to further squeeze BTC investors into selling. This is why I'm hoping for a bullish stock market into 2021. If the bottom falls out in world markets, that could put a real damper on the BTC bull market.

[Divinespark]

I think it will not affect the price of BTC. Bitcoin price has been falling recently, and there is no sign of stopping. BTW I hope that Corona can quickly end because it is putting many people in danger and a lot of people have died of this virus.

[angell134]

Investors' appetites for risk rise and fall over time. At times, investors are more likely to invest in higher-risk instruments than during other periods, such as during the 2009 economic recovery period. The 2008 financial crisis was considered a risk-off year, when investors attempted to reduce risk by selling existing risky positions and moving money to either cash positions or low/no-risk positions, such as U.S. Treasury bonds.

For this reason, those who have a bullish view of the market see almost any price drop as an opportunity to buy. Bitcoin has indicated it may go down further, but will return to higher levels quickly and within days.

If recession kicks in too, the job losses and lack of wage growth are going to further squeeze BTC investors into selling. This is why I'm hoping for a bullish stock market into 2021. If the bottom falls out in world markets, that could put a real damper on the BTC bull market.

In the short term for Bitcoin trading, it should be borne in mind that support may quickly break. Instant and futures pursue different goals, with the two types of trades, price recovery times and trader sentiment.

I think it will not affect the price of BTC. Bitcoin price has been falling recently, and there is no sign of stopping. BTW I hope that Corona can quickly end because it is putting many people in danger and a lot of people have died of this virus.

Now the price has fluctuated in the range of 8,500 to 8,900 dollars. Fear and greed index also shows the number 38, indicating that traders fear that we will probably see more short positions.

[Jeremy Franklin]

This virus started last year and that time the market is still in recovery phase. We saw the market turn better early this year then currently had a correction but why we connect these situations in covid-19?

I think people are just looking for an event on why this is happening in the market. But the fact is that's how the market works, it's unpredictable.

Exactly this, we don't know whats going to happen. We don't have our own personal crystal bowl. The market might go down for a while, but the blockchain world is moving forward on the long run. More advanced tech will have a huge influence on the price in the future. I doubt that events like the Covid-19 we see right now, should affect the Bitcoin price on a longer period.