The Bitcoin (BTC) price nose-dived four percent with U.S. stock futures on the news that President Donald Trump suspended travel from Europe.
The price of the leading cryptocurrency dropped to $7,561 but managed to slightly recover.
Another tough day for stocks
During his national address, Trump banned all flights from Europe for thirty days. Such a radical effort is supposed to prevent the spread of the coronavirus in the U.S.
Even though Trump clarified that the restriction didn't apply to goods, Dow Jones futures and S&P 500 futures are still down by more than three percent after the two benchmark indexes plunged into a bear market on Wednesday.
Meanwhile, Chicago-based CME Group, which launched Bitcoin futures in late 2017, is expected to close its trading floor to prevent potential infections.
Bitcoin react to Trump's travel ban
Despite a popular belief that BTC is uncorrelated, it continues to plunge together with stocks. Economist Alex Krüger claims the cryptocurrency is currently trading as a risk-on asset.
John Melas-Kyriazi of Spark Capital notes that BTC is heavily correlated to the equities based on its one-month performance.
Hence, it's safe to say that BTC is not counter-cyclical as of now, but things could change when central banks start printing even more money, according to BlockTowerCapital CTO Ari Paul.
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