After the latest news of Donald Trump’s coronavirus test was released, Bitcoin is one of the only safe-haven assets that have not soared.
Bitcoin has hovered at the loss line of the past 24 hours, falling more than 3.52% to $10,489 as of 0800UTC. The recent decline came after the US authorities filed criminal charges against the owners of BitMEX, which is one of the leading cryptocurrency derivatives trading platforms.
After Mr. Trump revealed that he and his wife Melania had tested positive for the coronavirus, the downward trend of Bitcoin accelerated. The performance of the global market proved that the reaction to the incident was negative. Futures related to the Wall Street Index fell all the way.
But at the same time, safe-haven assets such as gold, bonds and the U.S. dollar rose instead.
Bitcoin is about to fluctuate
Jeff Henriksen, co-founder and CEO of Thorpe Abbotts Capital, told CNBC that he expects that the global market will remain volatile as the US President’s diagnosis brings the coronavirus back to public attention.
The market strategist said: “This type of narrative has been working in the past, and you can see more growth-oriented companies in a few days (in the case of COVID changes that are considered to be performing well under any circumstances. Companies) and companies that need to recover are performing well.”
Since the beginning of this year, Bitcoin has been volatile under the risk of constant stock market corrections. In March 2020, cryptocurrencies fell more than 60% in just 48 hours of trading. As the demand for cash surges, its downward trend is because investors need cash to fill margin positions to offset losses in the stock market.
Mr. Henriksen pointed out that Mr. Trump’s coronavirus diagnosis has increased political uncertainty around the US presidential election on November 3. He added that he wants technology stocks to perform well, but he cannot say the same for low-priced companies with a cyclical history this year.
This has increased the conflict with Bitcoin, and now, the risk of cryptocurrency battling the coronavirus narrative again, this period usually allows investors to exchange cash back. At the same time, the long-awaited stimulus bill is ensuring that BTC/USD is kept at a low level.
2.2 trillion dollar package
When Mr. Trump enters the quarantine zone, his absence from work may delay the second coronavirus aid to Americans.
The House of Representatives led by Democratic Speaker Nanci Pelosi passed a $2.2 trillion bailout bill on Thursday. The vote took place after Ms. Pelosi and US Treasury Secretary Steven Mnuchin spent nearly a week discussing the scale of aid, and the latter hoped to counter-offer to $1.5 trillion.
However, people still doubt whether the House bill will be approved by the Republican-controlled Senate.
Kelly McKenney of Mrs. Pelosi, White House Press Secretary, said: “This is a good suggestion, but she is not interested in it. Currently, we have a $1.6 trillion plan. If this number goes up, we will tell everyone. .”
The delay will also drag down further downward pressure on the Bitcoin market.
