According to a publication made on February 13 by the Valor Investe portal, the increase in cases of fatal coronavirus victims has put pressure on the global stock market. There were several bags that showed setbacks due to the spread of the disease.
Amid the concern of a global spread of the disease, it is common for cryptocurrency enthusiasts to wonder how Bitcoin is doing. The answer is positive, according to experts.
Concerns about the coronavirus are having a negative impact on the global stock market. According to the Investe Value report, the Nikkei index (Japan) fell 0.14%, while Hang Seng (Hong Kong) lost 0.34%. The Kospi index (South Korea), in turn, decreased 0.24%.
In China, where the coronavirus outbreaks are found, the Shanghai and Shenzen indexes had the largest falls of 0.71% and 0.77%, respectively. The benchmark indices of Singapore (-0.10%), Malaysia (-0.24%) and Indonesia (-0.70%) also had negative sessions.
But not only in Asia are losses present, it was also reported that the recently confirmed deaths in Hubei, China, caused stock markets to fall in Europe and the United States.
Therefore, it is observed that the chaos caused by the coronavirus has not been productive for the traditional financial market. Meanwhile, Bitcoin is consolidating itself as a store of value.
Nigel Green, CEO and founder of the financial advisory firm of Vere Group, said the recent increase in Bitcoin, except for the episode with the Bitfinex settlements, will likely continue as long as the world worries about the coronavirus.
In a note written on his blog in early February, Green states:
“The more cases confirmed, the more countries will be affected and the greater the impact on traditional financial markets. In addition, the value of Bitcoin grows more «.
The founder of the Group deVere adds:
"Therefore, it is possible to assume that the value of Bitcoin will continue to increase until the cases of coronaviruses reach their peak, which is expected to occur between April and May, according to forecasts from a Hong Kong research group." The main reason why investors have been investing money in Bitcoin is the interest in cryptography as a store of value in times of uncertainty. ”
In the line of thought presented by Green, it is possible to go back a little and analyze the tensions between Iran and the United States. As analyst Willy Woo, known on Twitter, said, the scenario presented was the »beta phase» of Bitcoin as a reserve of value.
A graph also presented by Woo and produced by Messari shows that, during the most tense moments, the value of Bitcoin skyrocketed shortly after.
The two events that took place in sequence, first the tensions, then the coronavirus, can serve as a "litmus test" for Bitcoin to prove its value as a store of value.