Cryptocurrency News | How will the cryptocurrency market in 2020 be affected by the impact of the new coronavirus? [Oohira]

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FX experience since 2009, cryptocurrency experience since 2015. Utilizing cryptocurrency investment and prior experience, currently delivering cryptocurrency information on major newsletter and investment sites. Participates in numerous individual investor networks and shares knowledge gained from many investors. Running a cryptocurrency investment information site that beginners can learn from since 2016.

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*This article is a reproduction and edit of an article from FX攻略.com June 2020 issue. Please note that the market information written in the main text may differ from the current market.

Cryptocurrency Market Rebounds After Sharp Drop!

In March 2020, financial markets fell sharply. Due to the impact of the novel coronavirus, economic uncertainty caused stocks and cryptocurrencies (digital assets) to be sold off significantly. In particular, the stock market experienced its biggest decline since the Lehman Brothers collapse, with the Nikkei Stock Average and the Dow Jones Industrial Average also falling sharply. For the Nikkei, the Bank of Japan began buying listed investment trusts (ETFs), effectively propping up the market—an extraordinary situation indeed.

Cryptocurrencies, including Bitcoin, also fell in price like other financial markets, raising questions about their status as safe assets, which had gained influence in 2019. However, Bitcoin showed different movement, rebounding sharply after the crash while the stock market stagnated (Chart 1).

Because worldwide economic activity is being restrained due to the spread of the novel coronavirus and concerns about economic stagnation, countries are expected to implement monetary policies even further. In this context, I will discuss how Bitcoin might move, including my own thoughts.