It seems that the time has come for the coronavirus to influence stock index quotes as well. The fall in stock indexes is directly related to the coronavirus. The situation can only get worse. Imagine a young developing company. To develop it, you need loans that need to be repaid. And how can a person repay them if his/her business is practically frozen? Many businesses are simply quarantined. Customers do not buy products, therefore, revenue is reduced. We may see a wave of small-company bankruptcies, which are likely to be followed by defaults of larger companies.

On December 8, 2019 the coronavirus broke out in China. Now it is being trumpeted by all the world’s media. This virus has already claimed the lives of several tens of thousands of people all over the world. At the beginning of 2020, the Bitcoin price rose to a new record high and became $10,477, as the Chinese stock market fell sharply after opening due to a long new year break. However, there is no consensus among experts on how the COVID-19 will affect the Bitcoin exchange rate in the future. Let’s look in this article at the opinions of some experts who made Bitcoin price predictions and tried to forecast the situation in the crypto market.

The massive collapse in global financial markets, triggered by the failure of negotiations between OPEC and Russia, worsened the already difficult situation, sending BTC/USD to the lowest levels since the beginning of January 2020. The situation with the new virus has further aggravated the Bitcoin exchange rate.

Not long ago, Donald Trump, along with Treasury Secretary Steven Mnuchin, announced the injection of a trillion dollars into the US economy. Many people were simply shocked by a huge amount of money. Finance CEO Changpeng Zhao has reacted to the announcement of new injections into the economy. He admitted that the capitalization of Bitcoin can grow to a couple of trillion dollars.

“As we get used to talking about Trillions, a modest $2 trillion market cap of Bitcoin will put 1 BTC at $100,000. Not such a hard to imagine number now, right?”


Changpeng Zhao

To fully understand the place of Bitcoin in the background of the crisis and among other tools, you need to move to the past — about 10 years. At the very beginning of the development of Bitcoin, it was positioned precisely as an anti-crisis tool that was invulnerable to economic shocks of various formats. Bitcoin appeared on the very profitable ground, having established itself as an alternative financial instrument after the 2008 crisis. We cannot but agree with the fact that in general, the situation was the same (until recently).

A highly respected community analyst, known by the nickname “Hodlonaut” is confident that today’s negative situation is the best option for a “test drive” of Bitcoin.

“It’s been eleven years. Bitcoin is here with us. And it seems that economic shocks are coming, perhaps even stronger than before. It’s time to test in practice Bitcoin, which was created just for such events. It seems that we are now seeing a perfect storm.”


Hodlonaut

Bitcoin and Ethereum were among the outsiders, writes on Twitter Larry Cermak, an analyst at The Block cryptocurrency publication.

“The S&P 500 is down 25% since the peace but what about all the other indices, sectors and commodities? Gold is the only best performing asset with a return of 0.3% since February. Ethereum is nearly the worst-performing. Only beats by oil. Bitcoin is also among the worst-performer. Biotechnology was the best-performing investment sector, followed by consumer staple firms, gold-mining firms and health-care providers, food and beverage companies, and medical device manufacturers. Worst performers were energy and finance sectors”


Larry Cermak

Michael Novogratz, a former Goldman Sachs partner and founder, Chairman and Chief Executive of crypto-focused merchant Bank Galaxy Digital, believes that now is the right time to invest in Bitcoin.

As CryptoGlobe reported recently, Tyler Winklevoss, co-founder and CEO of the Gemini digital asset exchange, called Bitcoin a “vaccine” for the “money printing disease”. Anthony Pompliano (another very influential crypto bull), compared Bitcoin to a virus that is “spreading” around the world. On March 13, the price of Bitcoin fell below $4000, updating the ten-month low. But this fall can not be called dramatic, because, in the history of Bitcoin, there have already been far more dynamic dumps, up to the loss of more than 60% of the daily value. Therefore, it is premature to conclude the long-term prospects of the price of the first cryptocurrency in the world.

So, we can see that some people understand the current situation as a crisis, while others understand it as a time of great opportunities. There is an opinion that for the crypto market, any recession of the classical financial market is at hand, since there are very few traditional assets in the world that will not fall in price during economic instability.