The Wierdest Crypto Relationship In 2020

The Wierdest Crypto Relationship In 2020

Business Crypto news Social
February 17, 2020 by Super System
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Corona Virus and Crypto

The Wierd Relationship Between Coronavirus and Crypto

Corona Virus and Crypto

Growing cryptocurrency rallies and a daily increase in coronavirus scare is one of the most unlikely relationship you would come across in 2020. But this relationship is not necessarily leading to causation according to experts. 

The founder of Quantum Economics, Mati Greenspan gave his opinion on the relationship between both events. “Right now, I don’t see any direct relationship between the rise of coronavirus and cryptocurrency prices.” Rather, Greenspan sees the current increase in altcoin rally as a sign that more investors are looking into higher-risk investment alternatives 

” “In my estimation at the moment, we’re in an alt season and that generally tells us that people are looking to take risk if they have a bit of extra cash. This is exactly what’s happening in the stock markets as well. It’s most likely that whatever is driving crypto at the moment is a ‘risk-on’ sentiment and not flight to safety.”

Although some people see the outbreak of coronavirus as a sign to hold, Greenspan thinks otherwise. ” “I don’t think anybody inside of China, for example, would be going ‘OK, people are dying here, let me go buy Bitcoin,” he said. 

 Bitcoin Is Growing Stronger 

Despite the fact that there several stories of crypto mining facilities closing down because of the outbreak of the virus, the Bitcoin network hash rates remain unshakable. 

Greenspan sheds light on why Bitcoin value is surging high despite the outbreak of the coronavirus. 

“As far as we are concerned, the halving is a big deal. It is one of the main factors that is propelling the market forward,” he said. 

In addition, market instability in the Middle East might have been a catalyst for the crypto rally. 

“The whole thing was set off… with the U.S. missile drone strike in Iraq… For the first time in [its] short history, we saw Bitcoin reacting to a major geopolitical event as a safe haven. That gave Bitcoin a lot of legitimacy.”

Greenspan concluded that the central bank monetary policy is the greatest catalyst for the current crypto rally. 

” “The more we see action from the central banks, the more we see cash injections from the Federal Reserve, the European Central Bank and the People’s Bank of China. They’re just pushing money into the system and that money has to find a home.”

 

 


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