Bitcoin and Gold Prices Rise, Oil Slumps as China Struggles to Contain Coronavirus

By Nivesh Rustgi
Published January 27, 2020 Updated July 24, 2020
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Bitcoin and Gold Prices Rise, Oil Slumps as China Struggles to Contain Coronavirus

By Nivesh Rustgi
Published January 27, 2020 Updated July 24, 2020

Gold and Bitcoin prices are turning bullish as China struggles to contain the Coronavirus. The death toll due to the virus keeps on increase, reportedly, over 80 now.

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Patients of the epidemic have been reported across 15 countries including South Korea, California in the US, Thailand, Pakistan and so on.

The condition is strongly affecting global trade as countries all around the world are breaking contact with China. The virus is air-borne and all international borders are at alert for people coming from the country.

gold usd macro push
Gold/USD 1-Day Chart (TradingView)

Moreover, oil and not unexpectedly Chinese investments are in a steep downfall. China is one of the leading importers of crude oil, the demand in the country is decreasing as it fights the deadly virus. The price of oil dropped to lows around $52 with a $3 dive.

The adverse effect on the global trade is yet again driving the investors to safe haven assets like Gold. It’s price surged past $1550, second time after the tension between US and Iran escalated in the beginning of this year. However, the adverse global macro incidents since May last year have cause a huge uptrend in the yellow metal.

Currently, a deadly air-borne virus is causing a return to risk-off investments.

Furthermore, Bitcoin also took bullish cue with a rise above $8500. It gained nearly 4% with over $300 rise from daily lows yesterday. The price of Bitcoin at 5: 00 hours UTC on 27th January is $8615.

btcusd coinbase
BTC/USD 1-Day Chart on Coinbase (TradingView)

Apart from gold, other reserve currencies like the Japanese Yen and the US dollar futures gained as well.

The virus spread has caused a major upheaval around the world with efforts being taken to avoid contact. The efforts taken by Governments and health organizations around the world are hopeful of putting an end to it. However, the hysteria and fear around it is currently at its’ peak with a potential to worsen.

Do you think that the Chinese will be able to end the spread and nip the virus? Please share your views with us. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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