Bitcoin Slumps 6% on Coronavirus, Chinese New Year

Publicado en by Cointele | Publicado en

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Bitcoin has shed 6% in a week thanks mainly to Chinese New Year and uncertainty over coronavirus, commentators are suggesting.

Analyzing Bitcoin price data along with Chinese stocks' performance on Jan. 24, social media resource Light said a slump in performance had spread to cryptocurrency.

Stocks correlation shows Bitcoin's "Global stage".

Over the past several days, it notes, Bitcoin has in fact broadly correlated with stocks.

"China coronavirus-driven risk-off blanketing Chinese equities and Bitcoin. Iran correlation, now Chinese equities," Light commented.

"If there was ever a statement to the effect, Bitcoin has now made it to the global stage."

The virus "Factor" comes at a sensitive time historically, data reveals, with Chinese New Year traditionally creating sell pressure for Bitcoin.

Compiled by trader and analyst Alex Krueger, figures circulating on Twitter show that in the run-up to the celebrations, Bitcoin returns often turn out negative.

As Cointelegraph reported, critics have protested against the theory that Bitcoin price action is directly influenced by geopolitical or other world events.

The country still accounts for the majority of Bitcoin mining activity.

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