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Coronavirus causes Cryptocurrency Panic Worldwide

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Cryptocurrency Panic

It’s like a horrible script from some B movie. A virus is spreading all over the world causing major panic and disruption. Airports and schools are closed, major events are canceled.

The financial markets are in free fall. How did this happen?

What is the Coronavirus?

A new virus known as the severe acute respiratory syndrome coronavirus two (SARS-CoV-2) was identified as the origin of a disease epidemic that started in China. The disorder is known as coronavirus disorder 2019 (COVID-19).

The virus is a sort of coronavirus — a family of germs which can lead to illnesses like the frequent cold, severe acute respiratory syndrome (SARS) and Middle East respiratory syndrome (MERS).

Since this virus is really new, not much is known about it yet. Public health groups, like the World Health Organization (WHO) and the U.S. Centers for Disease Control and Prevention (CDC), are conducting research.

How the Coronavirus Affected the Financial Markets

Dealers and investors are spooked. The worldwide spread of the coronavirus and its capacity to disrupt international financial markets, together with stock markets round the world entering a major collapse last week has also had a knock on effect on the purchase price of cryptocurrencies like Bitcoin.

When you wake up and watch the news that the coronavirus is spreading and the NASDAQ and FTSE is down it can cause you to panic.

Your first thought isn’t necessarily that you should be going and purchasing as much bitcoin as you can.

Bitcoin started off in a powerful position in 2020, climbing back over the Psychological $10,000 bitcoin value.

Financial market instability first seeming to be fostered by geopolitical anxieties surrounding the escalating tensions between the U.S. and Iran.

Anxieties grew even furthr as the coronavirus news story spread much more favorably than the actual virus, having a billion dollar knock on international commerce.

With bitcoin’s Most Up-to-date collapse in the face of international market chaos, the Concept that it had started acting as a secure haven together with gold and also the Japanese yen is now appearing overblown.

“We could anticipate more knee-jerk responses from shareholders if more virus instances are reported since they look to keep their money safe and prevent any more harm in what’s an increasingly fragile market.” Says Andrew Blumer of financial education website Compare Brokers.

“Bitcoin was connected to other financial asset categories.

If stocks fall, this doesn’t imply Bitcoin will rise.

If gold Prices climb, this doesn’t imply bitcoin will grow with it in unison” Andrew said.

In 2008 with the worldwide financial catastrophe, with $1.5 trillion lost from the value of international stocks, currency and commodities.

The Organisation for Economic Cooperation and Development (OECD) has cautioned the international market could grow at its lowest rate since 2009.

The coronavirus outbreak and economic uncertainty has the OECD predicting growth of just 2.4 percent in 2020, down from a prior forecast of 2.9 percent, produced in November this past year.

Bitcoin cost has faulted recently following a solid beginning to 2020 that had many say bitcoin had started behaving as a so called safe haven investment.

Cryptocurrencies should be part of a bigger pool of diversified investments.

It looks as though there will not be a Bitcoin and stock exchange crash.

If anything, now’s the best time to pick up great deals of stock for a long-term wealth creation strategy.

But stocks values are based on real companies, with a solid value.

This means they are worth something. A number of these businesses have had their worth pulled down a notch or two, but the majority of them can and will recover.

We don’t understand enough about the coronavirus to forecast how long the recession will last.

Because of this I would be unwilling to begin purchasing stocks just yet, for fear of creating instant losses as the market still recovers.

For long term investors, patience, confidence and discipline are crucial to long-term safety.

The planet’s most prosperous investors ride out market changes and utilize the downtime to search companies and find the ones that could extend the distance.

Good stocks are businesses with a solid history and an adequate dividend yield.

However, with hardly any companies operating from a completely domestic supply and relying greatly on imports, the coronavirus will impact most FTSE, NASDAQ companies to some degree.

How fast these businesses recover and get back to business as usual will determine how quickly their share prices rebound.

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