Bitcoin gives up most of its gains in 2020 due to the Corona virus

Over the past three weeks, Bitcoin has found itself forced to adapt to a lot of unscheduled news on its list. year during those weeks.

Bitcoin started 2020 at $7000 and then extended its gains until it peaked in mid-February at $10,500, mainly supported by the halving event expected to occur next May in addition to some other contributing factors, but it quickly took Another course to drop quickly to the level of $ 7800, tracking the performance of the financial markets XM Arabia Which recorded its worst performance since the 2008 global financial crisis last week and oil markets that collapsed and lost nearly 30%.



During today's trading, the bitcoin fell by about 1.7%, after yesterday it lost about 9.4% of its value, equivalent to $ 1,200, due to the turmoil that the market is still experiencing, as investors' fears are rising about the repercussions of the Corona virus, forcing them to abandon risky assets and replace them with safe assets.

Bitcoin affected by the drop in oil prices

The market panic was raised by the collapse of the OPEC Plus alliance after Russia refused to participate in deepening production cuts, which angered Saudi Arabia, which pledged to reduce prices and increase its production, reaching record levels at 12.3 million barrels per day.

Bitcoin is not the only one that has suffered significant losses, other major cryptocurrencies have also suffered similar losses which indicates their complete lack of autonomy, and since the beginning of this week the total cryptocurrency market cap has lost an estimated $36 billion or 14%.

The Corona virus has been a powerful driver to exacerbate all global diseases, financial markets have fallen sharply, US Treasury yields have fallen to suspicious record lows, oil prices have suffered the biggest defeat since the 1991 Gulf War, and Bitcoin has plunged from its highest level ever this year at $10,500 to nearly $7,800. The terrible loss caused by the Corona virus is that it occurred in a very short time, and so far the virus is still expanding in its spread to harvest more deaths and injuries, and it will cause further deterioration and destruction.

Some experts believe that now is a good opportunity for crypto investors with long-term investment prospects, as the falling price is a great opportunity to buy bitcoin and take advantage of the lower price.

Bitcoin is expected to remain volatile in the short term, due to financial shocks and market turmoil, but for the long term investment, Bitcoin is a winning strategy.

Mohamed Abdel Khaleq

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