Bitcoin soars as Corona virus takes more lives

Bitcoin ended the first month of 2020 on a positive note. Over the course of January, the total cryptocurrency market capitalization increased by approximately 30% or the equivalent of $58 billion, as Bitcoin showed a growth of nearly 29% or the equivalent of $1900 for the month.

Although its levels are not the highest, it is the best start to the year since 2013, when the largest cryptocurrency in the world rose by more than 50%.

It is considered the main achievement of Bitcoin currency XM Arabia Over the past few days is the ability to stay above $9000, supported by several events related to market volatility of escalating fears of the outbreak of the Corona virus in China and the escalation of geopolitical tensions between Iran and the United States at the beginning of the year, while companies such as CME Group offered to Their clients offered bitcoin futures options, which gave them more (institutional) ways to trade.

Bitcoin

Bitcoin

Bitcoin is considered by some as a safe haven

Bitcoin rose sharply in trading on Tuesday, reaching its highest levels since the beginning of November, and the move occurred as concerns escalated about the economic fallout from the outbreak of the Corona virus in China.

And some suggest that the currency’s continuous upward trajectory is linked to the spread of the Corona virus, the more countries are affected around the world, and the greater the impact on traditional financial markets, the higher the price of Bitcoin.

Conclusions about Bitcoin's status as an emerging safe haven have been growing this year, especially after the price of the world's largest cryptocurrency by market capitalization rose along with gold and the Japanese yen, as news of the deadly coronavirus dominated the headlines.

In early January, bitcoin jumped after the news of the killing of prominent Iranian commander “Qassem Soleimani” in a US air strike, and gold soared with the escalation of tensions in the Middle East in the wake of the assassination.

Confirming these conclusions is what happened last year, as concerns about the US-China trade war escalated and the price of Bitcoin rose while stocks fell.

Analysts believe that Bitcoin's approach to halving as well as the recent boom fueled by pandemic fears and general market jitters are yet another reminder that Bitcoin is less risky and offers very high returns.

Bitcoin investors are now looking forward to the third “Halving” event expected to be held in May of 2020, where the rate of creation will be halved every four years, it is reported that only 21 million Bitcoin will be mined and mining operations will end in 2140.

Historically, halving events have been followed by significant price hikes, at the moment there is debate over whether the expected halving in May will lead to another rally or if the event has already been priced in, with Bitcoin hitting a record high of around $20,000 in December. December of 2017.

Mohamed Abdel Khaleq

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