Bitcoin Breaks $10,000, as Top Economist Predicts Chinese Market Stagnation

The main impact will come, according to Hyman, by way of loss of revenue as shoppers refuse to leave home. The risks associated with the virus and the loss in shopping revenue will damage Chinese manufacturing substantially. He stated, “It’s not the virus, it’s the trade that matters. People are not going out. They are not shopping, and that’s what’s hurting particularly China.” Coupled with the loss in shopping and the fear in the market, many see the virus as a final measure to flush out economic overextension. As the market has risen to all-time highs, any type of sudden event could create the necessary pressure to force sales. While Hyman does not see the U.S. economy in that state, the Chinese economy will likely suffer for some time. The prediction came just hours before Bitcoin climbed back above $10,000, ostensibly on the back of these fears. Even as investors vacate positions held before by Chinese related equities, funds are moving into safer asset structures. This, along with other low-risk ventures, applies to Bitcoin. Additionally, the potential for Bitcoin to rise sharply during the upcoming halving has also led to some speculation. The general sentiment seems to be that adoption has increased dramatically. The reduction in the Bitcoin supply caused by reduced mining rewards could drive prices up on the back of strong demand. Generally, the supply and demand ratios of Bitcoin have increased strongly. With built-in supply corrections like these, and with stable demand, markets tend to respond positively. With all of this global anxiety, a weak Chinese economic outlook, and an overextended macroeconomy, Bitcoin will likely see substantial upside in the near term.