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Crypto & Covid-19 - Bulls Vs Bears
• Zero Hedge - Tyler DurdenSo, uh, how's the coronavirus affecting crypto? Though some claim that Bitcoin doesn't track regular markets - this week it... did. Just as global markets sharply dropped this week, on early Friday morning, the price of Bitcoin sunk to its lowest since March, 2019, briefly below $4,000, according to metrics site CoinMarketCap. Like global markets, it's recovered slightly, now valued at around $5,425.
So, are people getting rid of magic money so they can feed themselves under quarantine? Or will Bitcoin's price pump back up as global markets decline, proving it to be a safe haven after all? We asked the crypto-experts, in the latest edition of Bulls vs Bears.
Bitcoin and the coronavirus: the bull case
Eric Wall, CIO at crypto investment firm Arcane Assets, told Decrypt that this short-term volatility is down to people de-risking their portfolio—crypto's a risky asset, even when the economy's doing well. But in the longer term, Wall said, "coronavirus-related stimulus packages from governments are likely to further bankrupt fiat's reputation as a form of store-of-value."