Report Suggests Bitcoin Rise is Related to Coronavirus
Another reason is the increase in the number of crypto initiatives by companies like Facebook and Square.
February 11, 2020 – Reports from various outlet are suggesting that the coronavirus outbreak is one primary reason why Bitcoin is suddenly in an uptrend.
Last week, Bitcoin was up 10% but also up 30% since December 2019, suggesting that this is the best start for the world’s first cryptocurrency since 2012. The coronavirus outbreak shook global markets but Bitcoin is in uptrend, which has been the case most of the time that global investors are “nervous,” reported CNN. However, Shaun Djie of the crypto company Digix also said that the uptrend “can be attributed to ongoing economic uncertainties.”
Another factor is the weaker dollar as interest rates are now low after cuts by the Federal reserves. With the weakened dollar, investors are probably looking for “safe haven investments”. Bitcoin, and by extension, gold are prominent alternatives for investors who want to safeguard the value of their wealth.
Of course, analysts warned that as a long-term portfolio, investors must not go overboard with putting too much Bitcoin in their portfolio, warning that Bitcoin is still 50% below its all-time high price of nearly $20,000.
Another reason is the increase in the number of crypto initiatives by companies like Facebook and Square. Djie said the backing of these companies definitely validates the cryptocurrency space. Frank Holmes, CEO of US Global Investors said 2020 will finally see more institutional investors coming to the digital field. However, he also said that the US Securities and Exchange Commission approving a crypto-backed exchange-traded fund.
Source: CNN
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