Bitcoin-BTC Price Pump Comes With Coronavirus Outbreak – Consequence or Coincidence?

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Wed, 01/29/2020 - 13:47
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    Many in the crypto community believe the recent Bitcoin surge is due to the coronavirus outbreak in China but a report on Bitcoin says this could be far from the truth

Cover image via 123rf.com

The Bitcoin price started pumping from the $8,300 area on January 26 – three days after the Chinese city of Wuhan, which is believed to be the epicenter of the new coronavirus epidemic, was put under quarantine.

BTC CMC
Image via CoinMarketCap

By now, the BTC price has reached the $9,345 level. However, an article by The Independent claims that this might not be the true cause of the BTC rally.

Has Bitcoin been rising along with global problems?

The Bitcoin price took off several times last year, when the US initiated a ‘tariff war’ with China and then nearly provoked WW3 with Iran. A price growth was noticed during the impeachment trial of Donald Trump, when the Australian forests caught fire and, finally, following the coronavirus breakout in China recently. The virus has also been negatively impacting both the US and Chinese stock markets, however, Bitcoin remains healthy and continues to grow.

Many cryptocurrency experts believe that Bitcoin starts appreciating when the global economy faces turmoil or when other large-scale problems occur.

Other cryptocurrencies, such as ETH, XRP or TRX, have also been surging in price. Simon Peters from eToro says:

"Prices jumped to near three-month highs following turbulence on traditional stock markets, reinforcing cryptocurrency's growing position as a possible safe haven investment."

However, the article from The Independent states:

“Despite this, there is little research to actually support the theory that such events are related to bitcoin's fortunes. Market movements have instead been connected to developments within the cryptocurrency industry, such as favourable regulation being introduced, or rumours that a country is developing its own cryptocurrency.”

The article has it that cryptocurrency quotes are often manipulated by crypto whales and by insider trading, citing cryptocurrency author David Gerard.

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Tron’s Justin Sun sends medication to China, TRX up 11 percent

Earlier today, Tron CEO Justin Sun tweeted that the Tron team are sending medical supplies to Wuhan to support the coronavirus victims. In the video Sun is wearing a mask.

Justin Sun
Image via Twitter

Some in the community believe this is yet another excuse for Sun to promote Tron.

Tron community
Image via Twitter

Meanwhile, the TRX price is up 9.99 percent, though a short while ago the coin showed an 11-percent rise.

TRX CMC
Image via CoinMarketCap

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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