The situation of Bitcoin is a bit strange, because cryptocurrencies for some time have been considered a safe haven for many. When financial markets went one way, cryptocurrencies used to go another, and the traditional economic cycles of the stock markets did not usually have an influence on Bitcoin .
Even many experts in cryptocurrencies assured that Bitcoin had become a safe haven asset, because there have been many times that Bitcoin has served for investors to protect their interests.
When the trade war between China and the United States began, the cryptocurrency began to recover its value and grew exponentially at the end of 2018. When Donald Trump accentuated his actions in the economic dispute from May 2019 until reaching the first agreement, the Bitcoin got to appreciate 80% .
However, the events that occurred around the coronavirus show that the status of Bitcoin as a safe haven is not yet very well defined. The fear of the coronavirus has unleashed a fall in the markets in which Bitcoin has not done its function as a refuge.
The collapse of cryptocurrencies is surprising, on the Coinmarketcap exchange the vast majority of cryptocurrencies reflect losses from 20% and some exceed 30%.
Analysis such as that of Coindesk seems to confirm that Bitcoin is being treated as a source of liquidity mainly to minimize the aversion to risk that is affecting almost all markets and another reason why people need money to cover expenses in case going into quarantine due to COVID-19. Only gold and treasury bonds seem to be resisting the onslaught of a coronavirus whose economic impact is increasingly notable.
But not only the coronavirus is affecting Bitcoin but also the so-called whales that are hitting the market with sell orders. Every time the cryptocurrency begins its recovery, they sell so big that it collapses again.
Everything indicates that although Bitcoin is considered a haven for some investors it is not immune to the coronavirus , The Keizer Report, the well-known proponent of Bitcoin said that the global panic would have a profound impact on the acceptance of Bitcoin this year.
Some investors are aware of the volatility of Bitcoin and that is why they diversify their investments for the occasions when the cryptocurrency market suffers a great loss like the one we have seen with the arrival of the coronavirus, many others are optimistic waiting for the soon Bitcoin recovery, although according to the pattern that Bitcoin has shown in crashing situations, it is likely that its recovery will be gradual .
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