BTC Does React to International Tensions and Social Problems. (Coronavirus)
The main manufacturers of cryptocurrency mining devices, including
MicroBT, Bitmain and Canaan,
have informed their customers that they will be delayed in deliveries of integrated mining application circuits (ASIC) because the Chinese government has decided to extend the New Year's holidays Lunar caused by the spread of the coronavirus in China.
Precisely with the entry of the "Year of the Rat" the presence of the lethal virus is additionally announced.
This combination has created an impact on the capitalization of bitcoin never seen before. With the New Year , it's not surprising that Chinese merchants move faraway from cryptocurrencies for a couple of days, which causes a market downturn thanks to lower prices and lower volumes.
The first quarter of every year may be a particularly bad period for BTC.
In the opinion of several experts, this is often influenced by the Chinese festivities. We must not forget that the red giant star remains the state with the very best mining index within the world, despite strict capital controls and government regulations within the rejection of the crypto trade.
Chinese surprise
According to Forbes reports of January 27, 2020, Bitcoin experienced a 5% increase, briefly increasing to $ 9,142.80.
Bitcoin isn't the sole crypto that experienced a lift in the week . Other assets also recorded acceleration.
If we consider that the financial institution of China, following the principles of the fashionable #Monetary Theory #(MMT) has injected 1.2 trillion yuan ($ 173 billion) into the economy, we could assume that this is able to be reflected in an imminent devaluation of what local. currency, which could perhaps be a determining factor that has led citizens to use BTC as a refuge for his or her capital.
Another factor to think about is that the incontrovertible fact that , motivated to spread the virus, many migrations can occur anywhere within the world. Especially from China, despite strict quarantine measures.
Then it might be very practical for somebody who decides to emigrate, to possess a universal and solid currency that doesn't lose value, interchangeable anywhere within the world.