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    BTC Yet Again Mirroring Gold, Investors Rush To Safe Haven Assets After Coronavirus Outbreak

    • 2,862 cases of the Coronavirus confirmed in China so far with the death toll at 81
    • U.S. Shares posted their biggest drop since October, the full impact of the Coronavirus not felt yet
    • Risk aversion meanwhile pushing up gold prices, bitcoin follows bullion surges to $8,740

    The outbreak of Coronavirus in China has resulted in the stock market plunging. In China, 2,862 cases of the Coronavirus have been confirmed so far, with the number of cases rising worldwide. The death toll in China meanwhile has risen to 81.

    The U.S. stock index futures fell sharply on Monday morning, continuing the drop seen late last week after more cases of the Coronavirus were confirmed on the weekend.

    The full impact of the coronavirus not felt yet

    Investors are rattled as worries about the potential impact of the Coronavirus outbreak in China. The government has officially extended the Spring Festival holiday until February 2, the public holiday for Chinese New year 2020 began on Jan. 24 was to originally conclude on the 30th, in China.

    As a result, S&P 500 Index Futures contracts expiring in March fell as much as 1.3% while the Dow Jones contracts for March and the Nasdaq 100 are down 1%. Amir Anvarzadeh, senior strategist at Asymmetric Advisors in Singapore wrote,

    “Although stock markets remained reasonably calm last week, we believe the full impact on sentiment from fears of the coronavirus has clearly yet to be felt.”

    “Given that millions have already traveled across China and indeed to many other countries for the Chinese New Year, the full impact of the contagion will not be known until around mid-February at the earliest.”

    Risk aversion meanwhile pushing up gold prices

    On Friday, U.S. shares posted their biggest drop since October amidst the reports of new infections around the globe and Chinese President Xi Jinping calling the rapid spread of the virus a grave situation.

    However, historically world epidemics have been bullish for market performance.

    While the stock market crashed, gold jumped 1% on Monday, to about a three-week high as investors move to safe havens. Spot gold is at $1,581.45 per ounce. Commerzbank analyst Carsten Fritsch said,

    “Risk aversion is pushing up gold prices. Weekend news showed that (the coronavirus) is still spreading in many countries across the globe and this could impact economic activity and market sentiment.”

    Despite the US dollar holding near two-month highs, gold is taking advantage of the current uncertain situation. ActivTrades chief analyst Carlo Alberto De Casa said,

    “The main trend remains bullish, with the short-term correction seen in the last few weeks seemingly over, increasing the chance of the price achieving a new 7-year-high in the next few weeks.”

    Another reason for strength shown by gold prices was the reports of three rockets hitting the US embassy in Iraq’s capital, wounding at least one person.

    Bitcoin Jumps Above $8,700 as well

    As gold prices rose, so did the Bitcoin prices. This has been the second time third time this year that Bitcoin has mirrored gold’s movement.

    BTC price started climbing on Sunday from about $8,270 to $8,600 level. Today, BTC/USD took another spike, going to $8,740 level, up 3% while managing the daily trading volume of $673 million.

    This week investors will be watching the US Federal Reserve's first policy meeting of the year on Jan. 28-29. Based on the Fed’s decision on interest rates, which is widely expected to keep them unchanged, it will determine if gold and bitcoin will see another jump.

    Bitcoin (BTC) Live Price

    1 BTC/USD =$9,739.6824 change ~ 1.84%

    Coin Market Cap

    $177.55 Billion

    24 Hour Volume

    $4.42 Billion

    24 Hour VWAP

    $9.7 K

    24 Hour Change

    $178.9727

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    AnTy
    AnTy
    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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