Is the coronavirus helping Bitcoin?

By BlueChip Team

As the coronavirus continues to take it's toll on China and slowly the rest of the world, the stock market has been feeling the effects. Although some companies have been seeing surges, most are taking a hit. Many companies manufacture a majority of their goods in China and sell them across the world, but with the Wuhan lockdown, production and export in China have declined. Other companies have also closed stores in China and are taking a loss. 

On a different tune, Bitcoin has been increasing over the last couple weeks and investors are hopeful that it will continue to rise to break the $10,000 mark. So why is this effect so different from that of the stock market? Economic uncertainty might be the explanation as people become wary about the global stock market and turn to other means such as Bitcoin and gold. The coronavirus seems to be one factor that reduces confidence from the stock market alongside many others (trade wars, politics, etc).

Although Bitcoin is doing well, coronavirus has shown negative impacts to cryptocurrency. Currently, manufacturers in China are unable to ship mining rigs and are delaying shipments across the world. This hasn't had a direct impact yet, but has the potential to cause problems if the virus continues to limit deliveries over time.

Tags: Informational