Gold Prices Log 7-Year High as Coronavirus Nears Global Outbreak – Will Bitcoin Follow?

24 Feb, 2020 Updated 22 May, 2025

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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 X at @nivishoes or mail him at nivesh(at)coingape.com

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Gold and Silver prices are skyrocketing as coronavirus threatens to become a global pandemic. The spread of COVID-19 in the world’s second largest economy is now starting to affect countries all over the world.

The scare of a pandemic is coming to realization, signalling a global disaster. Financial and crypto analyst, Mati Greenspan tweeted earlier today,

Took a short position on the Nasdaq and long Gold before the weekend.

Small money big leverage. Guessing with the spread of Coronavirus and #FeelTheBern gaining ground, those positions will open in the money tonight. #HowtoProfitfromDisaster

He reports closing the position on a profit after the breakout on Monday opening. The idea is simple – a slowdown due to the Coronavirus scare. Gold prices log a seven year high since 2013 at $1681/ounce. Silver also recorded hefty gains.

gold-usd-markets — Gold/USD 1-Day Chart (TradingView)

Yesterday, Xi Jinping noted that the losses due to the virus will have a “relatively big impact on the economy and society.” The statistics on the the industrial output of the country for February is due today. The slowdown of manufacturing output and expenses to curb the threatens to slow the country’s GDP growth from 6% to 2.5%.

Reportedly, the death toll has increased to 2,442, with 76,936 infections as of Sunday. Even Italy has over 144 cases reported as of no, with Iran and US reporting 43 and 35 cases, respectively as well.

The safe haven demand of Bitcoin, on the other hand, seems to be facing a lot of resistance at $10,000. The price went on a bullish spree during the weekend. However, sentiments turned bearish after the price drops at opening on CME, and China and Japan on Monday.

Also Read: China Puts Its Money Under Quarantine; This Is Why We Need Bitcoin

Nevertheless, since the beginning of 2020, Bitcoin has price movements have aligned with global issues with more frequency than before (US-Iran Tension and First Outbreak of Coronavirus). Furthermore, gold seems to be leading the gains before Bitcoin, as global cues have had a considerable effect on its price.

With the outbreak reaching a global threshold, due to think Bitcoin will gain recognition as Safe haven or fail due to selling pressures? Please share your views with us.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.