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The effect of coronavirus on the price of the cryptocurrency

FXcoins - The effect of coronavirus on the price of the cryptocurrency

Today the price of the first cryptocurrency reached 9 USD 290, despite the fact that in mid-December 2019 price was at 6,600 USD. Three Arrows co-founder of su, Zhu and managing partner of Kenetic Jehan Chu explained the probable reasons of increase in the price of Bitcoin.

 

Yesterday, 29 January 2020, the average price of Bitcoin surged to two-month high of USD 9 400, after which the rate has adjusted and is now trading in the range of 9 290 USD. It is worth noting that in recent days the Bitcoin showed an increase of 2.5%. An important fact is that since mid-December, the growth of Bitcoin was about 40%.

 

Soo Joo, who is the co-founder of Singapore investment company Three Arrows indicates that the increase in the capitalization of digital money has affected Asian countries. Zhu further explained that the increase in the price of Bitcoin could influence the postponement of the resumption of trading after the holidays due to the spread of the coronavirus, writes CoinDesk.

 

Su Zhu continued, - “those who want active action traders are turning to the cryptocurrency market, 24/7, as in Asia, the resumption of trading after the holidays was postponed due to coronavirus”.

 

But the managing partner of a Hong Kong investment company Kenetic Jehan Chu holds a different view. In his speech he indicates that at the time of the precarious world situation and the impending crisis of the first cryptocurrency ceased to seem too risky asset.

 

“The wave of successive shocks, including the Iranian crisis, political strife in the United States, and now this coronavirus, destabilizing the stock markets, forcing investors to look for alternative ways to save their money,” — said Chu.

 

Earlier, Deutsche Bank said fluctuations in the price of Bitcoin does not allow it to become a reliable currency. While experts predict that cryptocurrencies will be mainstream within two years, and the main drivers for their adoption are called digital the yuan and the project Libra from Facebook.

30 January 2020

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