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


coronavius scare

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

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.

Corona Affected Regions (Source

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. 

Author: Nivesh Rustgi
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
Post your comment...
Nivesh Rustgi 1180 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
Follow Nivesh @