The Coronavirus has taken lives of 6,500 so far. The spreading COVID-19 has seized the financial markets as the world’s stock markets are suffering badly despite the governments’ measures to sustain the economy. Bitcoin is not exceptional as it witnesses a record low even below $5,000.

Fed’s Measures to Support Economy

The central bank of the United States Federal Reserve in its recent announcement states that the interest rates are cut down, from 0 to 1/4 percent. The initiative is taken to encourage investors’ confidence in the US markets.

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The central bank also announces the package of $700 billion to counter the bearish markets. ‘’To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion,’’ Fed states.

Still, the US markets have not witnessed fruitful results of the injection of $700 billion as markets are going down steadily. It seems that the government’s action would not prevent the economy from COVID-19. This is not only for the US, but the whole world is witnessing negative effects of Coronavirus on the global financial.

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Bitcoin is Also Suffering

Besides traditional markets, the digital assets market is also under the bombardment of the Wuhan-based virus. On Monday, Bitcoin crosses the significant level of $5000 in the downward direction. The move was unexpected, but it took the title of ‘safe-haven’ away from the Bitcoin.

On Monday, the leading assets first surged to $5,823, but then fluctuations in the price value started. After losing more than $1000, it plunged to its lowest lows. However, the leading asset recovered some loss in the price value. At the press time, Bitcoin is still low by nearly 7% in the past 24-hours.

Despite bitcoin price meltdown, some crypto maximalists are still favoring the coin move. The co-founder and CEO at Gemini, Tyler Winklevoss, Co-Founder, declares bitcoin as the ‘’world’s greatest hedge.’’ According to Winklevoss:

‘’Bitcoin is not a hedge to pandemics, it is a hedge to fiat regimes. A sudden, negative demand shock in the global economy’ will affect every asset, including gold, in the short term.’’

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