The fear surrounding the deadly coronavirus (COVID-19) has swept global markets. This has led to the collapse of commodities, cryptocurrencies and stocks in the past few weeks.

                       Recently, Bitcoin has depreciated by 25%

According to a well-known analytical company, an interesting pattern can be traced in the crypto industry, namely, the correlation between the cryptocurrency market and the activity of the COVID-19 discussion. This link is negative, so digital assets are depreciating amid growing fears of a global pandemic.

Despite this, one of the leading analysts noted that the economic chaos caused by the virus will ultimately be an optimistic catalyst for the crypto market, as digital assets will provide investors with the opportunity to avoid the problems associated with the traditional financial system.

Discussion of the coronavirus and the dynamics of the crypto market correlate

For several weeks, Bitcoin has significantly depreciated from a maximum of $ 10,500 to a minimum of $ 7,700, which was reached in the evening of March 9. Since then, the leading cryptocurrency has recovered by 4%, and analysts admit the possibility of continuing this process.

Intensive sales in the crypto industry took place in tandem with the collapse of global stock markets. The traditional sector has seen the toughest correction since the 2008 global crisis.

The status of cryptocurrency as an asset-refuge remains unconfirmed. It also discusses the extent to which the negative dynamics of BTC depends on the trend of the US stock market. However, one fact is obvious: coronavirus is the main culprit of market turbulence of all types of assets.

According to recent studies by the analytical company Santiment, at the moment there is an inverse relationship between the dynamics of the BTC / USD rate and the discussion of coronavirus on several social platforms, including Reddit, Telegram, Discord, etc.:

 According to our Emerging Trends platform, there is a consistent inverse correlation between coronavirus / COVID19 discussion rates and Bitcoin pricing.

Can the fear of coronavirus prove to be a positive factor for the crypto industry?

Although Bitcoin has recently been acting as an asset at risk, one of the leading analysts believes that the potential recession caused by the current sale in traditional markets will ultimately prove to be a positive factor for the crypto industry.

Professional trader Crypto Michael noted that the “irresponsible policies of the financial system” is the main reason for the impending crisis:

As the excitement and fear of the spread of coronavirus continues to increase, the pressure on the sale of crypto assets, according to the latest correlation data, will continue to grow. However, in the long term, the strategy of avoiding the risks of the traditional sector may turn out to be a super-bullish factor in the development of the crypto industry.