Is Covid-19 a cause for BTC price drops?

[vietnamoi.vn]

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

[freetoken01]

Perhaps you were right. And I have the same opinion as you. However, all is only temporary and when the disease passes, BTC will return stronger. I believe so. You have quite a deep appreciation of this and deserve praise. Wish you success

[Pffrt]

Including this thread at least one hundred threads have been created so far on this issue. Why create new thread rather than searching about it join on the discussion on existed thread?
Of course such pandemic will affect the global eeconomy and BTC is one them. So, it is common that due to the virus, BTC price will be affected.

[MrcMrc]

During the virus, bitcoin has also risen in price, so I do not see any effect again. What you are saying now is what we do not want to hear. I will advise you to buy bitcoin now, the price will increase over a long period of timw after halving.

[Wenbing]

<snip>
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.

Well, bitcoin doesn't exist independent of the economy. Bitcoin is an integral part of the economy. As such whatever that affect the economy will affect the crypto system too. Its just like the human body- it has many parts. If one is injure it affects the effectiveness of other parts.

But, ironically this is the best time  to take the risk of investing into bitcoin because at the signal of economic recovery the ROI of such investment will skyrocket.

[20kevin20]

It completely depends on the path we take as soon as the real problems come up. I still believe we haven't entered the worst timeline yet.

I mean, it depends on what the most significant part of traders think - their way of doing economics is going to show the most significant change. If the majority of the market players will have no savings and will need to sell their assets, the market takes a negative turn. It can't really be predicted imo with much accuracy. I'm going to just let it be and whatever happens, I'll be right here shilling BTC 'till the end.

~
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
~

No offense but this one sounds kinda stupid. We obviously don't bring anything with us upon death.

[TIDOVEE]

I thought of this too, Should COVID 19 lead to drop in the price of Bitcoin? I succumb to one of the points you made that a lot of people are making withdrawals than investing during to short finances at this time. But actually because of the state at which the market was even before the virus, one could not say it was the virus effect. I had initially known that the rising of the price won't be a rush Immediately and after the halving. It will take time.

[kryptqnick]

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

These reasons sound plausible, but I think it's simpler than that. COVID-19 affects the economy, but I don't think this impact is serious when it comes to cryptocurrencies. Another thing COVID-19 affects is mental health, and I think this is closer to the point. In particular, the pandemic brought a lot of uncertainty and uncomfortable restrictions, so the level of anxiety is very high. This can trigger a lot of panic selling. And honestly, I guess Bitcoin is not doing that bad right now. It's more or less stable even though things are not getting better with the world.

[avikz]

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

Initially we all thought that COVID-19 is not impacting bitcoin. I remember having few arguments about it as well. However, the situation we are currently living under - it's impossible to ignore the impact COVID-19 is having on every areas of our life. Cryptocurrency is not exception anymore. I do agree with all 4 points you have mentioned here which is generally affecting the price of bitcoin or any other cryptos. Bitcoin will only start showing signs of recovery once people have surplus money in their hand. As of now, world is facing a severe financial crisis and we don't know when we will be able to get out of this situation. This uncertainty is definitely hurting the growth of cryptos in a holistic manner.

Having said that, I strongly think that it is more important to stay fit and healthy at this moment. Money will find its way at a later stage! Stay at home and stay safe!

[FanatMonet]

Yes, many people lost their incomes, and many were faced with the fact that they needed money for various purchases, it could be different purchases of medical goods, products or a banal supply of cash, in case of any situations. Therefore, the pandemic hit pretty hard on cryptocurrencies.

[Stedsm]

1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.

They are being given stimulus packages via airdrops and it is being said that some of them are in a hurry to invest into crypto.

2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die

Who says that cryptocurrencies won't bring you anything if you die by virus? It may buy you some place where you intentionally want to get buried, it may also bring some peace and smiles on your family members' faces because you've invested some of your money into crypto and leave that crypto to someone close to you by letting them know about the same. As well, allowing them to sell it whenever they want to, so they can hodl and then sell it at better prices.

3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.

I agree to this one, that they need money in order to pay for things but cash? I don't think so because cash is also paper money and everyone is being advised to use digital payments mostly, so to stop the spread of virus via cash. Don't you think this is an opportunity for digital cryptocurrencies too?

4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

No, the total crypto marketcap is worth nothing compared to trillions of $$$ worth of markets you're speaking about. So, investors may not be taking a chance now due to halving but may prove us wrong that BTC will remain in sideways, by just liquidating all the shorts till a level that even these shorts won't have thought of.

[Kemarit]

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities

Bitcoin is speculative asset, based on supply and demand.

1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

If we go on your reasoning, the pandemic or at least the fear in the crypto market took its toll last month plunging to $3800 but have you noticed that the market has bounce back already? If the Covid-19 has a direct impact to the market and again based on your logic the price should be 0 by now. But it didn't happened right?

[Darker45]

1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.

If there is money flowing into Bitcoin during this time, it would not be coming from people who have lost their income. It would be coming from the investors who try to get away from the plunging traditional market; the Bitcoin market being more or less independent.

2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die

This is irrelevant because when you die all kinds of investment will not matter anymore.

3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.

In a difficult economy, investors will need something through which their wealth will remain safe. I don't think investors will sell their assets just to be able to maintain their workers' payroll. If their business is losing, they will certainly shut down.

4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

Again, investors are probably more afraid to keep their wealth in fiat or in stocks.

[thundercrystal]

Hmm I think it isn't really the COVID 19 fault why bitcoin Price drops because we even see some minor increasing of the price amidst the crisis, but it is mainly because of the market. If the most of the people sell their assets, then we absolutely know what will be the effect of it. So it is really on the investors for me.

[pooya87]

you are missing the fact that bitcoin is not an asset, it is a currency. and majority of those who have chosen to convert their fiat to bitcoin have done it to either escape the tyranny of centralized powers or because they know this decentralized currency is independent of any other markets.
there is of course panic due to the other markets going up in smokes these days but as we have seen from the past several weeks the effects of that panic caused 2 days of falling and then the price even recovered most of it within a week. now the only effect that panic has is the uncertainty that people have about the time the rise begins that is why it has not yet begun even though there is a serious accumulation going on.

[Alanin]

3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

These 2 plays a big part in the price drop.
If you followed other markets out there. you would notice that they had the same pattern.

[AniviaBtc]

It completely depends on the path we take as soon as the real problems come up. I still believe we haven't entered the worst timeline yet.

I mean, it depends on what the most significant part of traders think - their way of doing economics is going to show the most significant change. If the majority of the market players will have no savings and will need to sell their assets, the market takes a negative turn. It can't really be predicted imo with much accuracy. I'm going to just let it be and whatever happens, I'll be right here shilling BTC 'till the end.

~
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
~

No offense but this one sounds kinda stupid. We obviously don't bring anything with us upon death.

It is so obvious that this Covid-19 really affect a lot of sector in our country, most especially, the financial or economic sector. Economy of most countries crashed because of the Covid-19 that really increase the demand of those necessities just to survive the quarantine. Market are panicking and government has nothing to do with that but to fight this economical problem.

The crude oil's price also crashes to 0 and this is the first time in the history, I think it occur because of the existence of Covid-19. The virus is really uncontrollable and very complex as it is spreading really fast and killed a lot of people are affected and killed by this pandemic.

BTC is also affected most especially it is them most popular cryptocurrency and many people are using this. It is true that you can't bring and manipulate your BTC when you die, that's why you also need to manage your coins and at the same time taking care of yourself. Bitcoin's price is really having a hard time to grow again because of this virus but I know it will bounce back as soon as this pandemic ends.

[CHENIEN]

yes, we can't deny it that the pandemic virus also impacted the price of BITCOIN and continuing to show bullish signs and obviously that worldwide there will be an economic loss particular of the biggest business on the traditional market meaning many investors are implementing precautionary for safety measures.

[Mikky.Crypto]

Well, I've never tried to think of Covid-19 and BTC price all together but now it has sense. Think, you're right.

[Thirio]

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

I mean yeah BTC will be affected due to the global economic state right now but I beg to disagree. In my opinion, this is the perfect time for BTC to rise again. With all the social distancing and lockdowns implemented, being online is what keeps us and the economy going. People are staying and working from home, online shopping (though already popular even before the pandemic) and with this, online currency. So I wouldn't be surprised if BTC booms in the following months.