It may be a coincidence that the cryptocurrency markets rallied when the news of the Coronavirus outbreak in China worsened — but to claim it is actually good for Bitcoin is absurd, to say the least. This is exactly the claim of one ‘respected’ mainstream media outlet.
Over $20 billion has flooded back into crypto-asset markets since the weekend. Bitcoin rallied again to top out over $9,000, and gold has also made a push this week.
The mainstream media is becoming increasingly clickbaity when it comes to ‘news’ regarding the cryptocurrency sector or Bitcoin. The Financial Times, which is usually considered to be above the rest of the tabloids, stooped to their levels yesterday with the headline: ‘Coronavirus is good for Bitcoin.’
Incredulous Cryptocurrency Rants
The FT opened with a vitriolic barrage at bitcoin and its brethren stating;
“Don’t let moral anguish over the deaths of potentially thousands of people get in the way of an opportunity to shill some crypto and pump up the price of bitcoin.”
The article, which reads more like a personal rant, then went on to highlight a couple of tweets from obscure XRP supporters claiming that ‘dirty fiat’ may be causing the spread of the infections.
The fact is that Bitcoin cannot possibly ‘benefit’ from any adverse news or a viral outbreak because it is a decentralized autonomous network that doesn’t have a conscience.
Castle Island Ventures partner Nic Carter added;
“These lunatics gave Craig Wright an audience, that’s how deep their pathological hatred of bitcoin goes, they elevate the industry’s worst fraudsters. Insane”
Bitcoin is doing what Bitcoin has always done. As pointed out by analyst and industry observer @Josh_Rager;
“The coronavirus is almost becoming click-bait for crypto content creators. The short answer- $BTC has made no abnormal price changes during the recent panic waves though stocks in China have taken a significant hit,”
Correlation With Gold
One thing that can, and has been observed though, is Bitcoin’s correlation with gold. This correlation has been evidenced twice this year in two separate incidents.
The tensions in the Middle East sparked rallies for BTC and gold simultaneously and both assets have made sustained moves higher during the Coronavirus outbreak.
To say this is ‘good for Bitcoin’ is utterly absurd. What it does show is that the asset has cemented itself among traditional vehicles of investment and its safe-haven narrative has strengthened.