Is Covid-19 a cause for BTC price drops? - page 5.

Darker45

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Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.

If there is money flowing into Bitcoin during this time, it would not be coming from people who have lost their income. It would be coming from the investors who try to get away from the plunging traditional market; the Bitcoin market being more or less independent.

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2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die

This is irrelevant because when you die all kinds of investment will not matter anymore.

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3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.

In a difficult economy, investors will need something through which their wealth will remain safe. I don't think investors will sell their assets just to be able to maintain their workers' payroll. If their business is losing, they will certainly shut down.

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4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

Again, investors are probably more afraid to keep their wealth in fiat or in stocks.

Kemarit

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Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities

Bitcoin is speculative asset, based on supply and demand.

Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

If we go on your reasoning, the pandemic or at least the fear in the crypto market took its toll last month plunging to $3800 but have you noticed that the market has bounce back already? If the Covid-19 has a direct impact to the market and again based on your logic the price should be 0 by now. But it didn't happened right?

Stedsm

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Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.

They are being given stimulus packages via airdrops and it is being said that some of them are in a hurry to invest into crypto.

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2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die

Who says that cryptocurrencies won't bring you anything if you die by virus? It may buy you some place where you intentionally want to get buried, it may also bring some peace and smiles on your family members' faces because you've invested some of your money into crypto and leave that crypto to someone close to you by letting them know about the same. As well, allowing them to sell it whenever they want to, so they can hodl and then sell it at better prices.

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3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.

I agree to this one, that they need money in order to pay for things but cash? I don't think so because cash is also paper money and everyone is being advised to use digital payments mostly, so to stop the spread of virus via cash. Don't you think this is an opportunity for digital cryptocurrencies too?

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4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

No, the total crypto marketcap is worth nothing compared to trillions of $$$ worth of markets you're speaking about. So, investors may not be taking a chance now due to halving but may prove us wrong that BTC will remain in sideways, by just liquidating all the shorts till a level that even these shorts won't have thought of.

FanatMonet

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Yes, many people lost their incomes, and many were faced with the fact that they needed money for various purchases, it could be different purchases of medical goods, products or a banal supply of cash, in case of any situations. Therefore, the pandemic hit pretty hard on cryptocurrencies.

avikz

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Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

Initially we all thought that COVID-19 is not impacting bitcoin. I remember having few arguments about it as well. However, the situation we are currently living under - it's impossible to ignore the impact COVID-19 is having on every areas of our life. Cryptocurrency is not exception anymore. I do agree with all 4 points you have mentioned here which is generally affecting the price of bitcoin or any other cryptos. Bitcoin will only start showing signs of recovery once people have surplus money in their hand. As of now, world is facing a severe financial crisis and we don't know when we will be able to get out of this situation. This uncertainty is definitely hurting the growth of cryptos in a holistic manner.

Having said that, I strongly think that it is more important to stay fit and healthy at this moment. Money will find its way at a later stage! Stay at home and stay safe!

kryptqnick

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Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

These reasons sound plausible, but I think it's simpler than that. COVID-19 affects the economy, but I don't think this impact is serious when it comes to cryptocurrencies. Another thing COVID-19 affects is mental health, and I think this is closer to the point. In particular, the pandemic brought a lot of uncertainty and uncomfortable restrictions, so the level of anxiety is very high. This can trigger a lot of panic selling. And honestly, I guess Bitcoin is not doing that bad right now. It's more or less stable even though things are not getting better with the world.

TIDOVEE

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I thought of this too, Should COVID 19 lead to drop in the price of Bitcoin? I succumb to one of the points you made that a lot of people are making withdrawals than investing during to short finances at this time. But actually because of the state at which the market was even before the virus, one could not say it was the virus effect. I had initially known that the rising of the price won't be a rush Immediately and after the halving. It will take time.

20kevin20

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It completely depends on the path we take as soon as the real problems come up. I still believe we haven't entered the worst timeline yet.

I mean, it depends on what the most significant part of traders think - their way of doing economics is going to show the most significant change. If the majority of the market players will have no savings and will need to sell their assets, the market takes a negative turn. It can't really be predicted imo with much accuracy. I'm going to just let it be and whatever happens, I'll be right here shilling BTC 'till the end.

Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

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2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
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No offense but this one sounds kinda stupid. We obviously don't bring anything with us upon death.

Wenbing

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There is gold in volatility..

Quote from: vietnamoi.vn on April 21, 2020, 09:56:57 AM

3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.

Well, bitcoin doesn't exist independent of the economy. Bitcoin is an integral part of the economy. As such whatever that affect the economy will affect the crypto system too. Its just like the human body- it has many parts. If one is injure it affects the effectiveness of other parts.

But, ironically this is the best time to take the risk of investing into bitcoin because at the signal of economic recovery the ROI of such investment will skyrocket.

MrcMrc

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During the virus, bitcoin has also risen in price, so I do not see any effect again. What you are saying now is what we do not want to hear. I will advise you to buy bitcoin now, the price will increase over a long period of timw after halving.

Pffrt

sr. member

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Including this thread at least one hundred threads have been created so far on this issue. Why create new thread rather than searching about it join on the discussion on existed thread?
Of course such pandemic will affect the global eeconomy and BTC is one them. So, it is common that due to the virus, BTC price will be affected.

freetoken01

newbie

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Perhaps you were right. And I have the same opinion as you. However, all is only temporary and when the disease passes, BTC will return stronger. I believe so. You have quite a deep appreciation of this and deserve praise. Wish you success

vietnamoi.vn

jr. member

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Although Halving has come close, it seems that there is no optimistic signal that BTC will rise. Currently Corona Virus is making it difficult for the leading economies in the world. And is that the main cause of Bitcoin price drops? Let me give you some possibilities
1. Unemployed people do not have income so they do not dare to invest in Cryptocurrency.
2. The psychology of fear that if we die by Virus and die, investing in Cryptocurrency will not bring anything when we die
3. In a difficult economy, investors need to withdraw assets and sell cash to maintain businesses such as payroll, purchase and sale of goods instead of investing in cryptocurrencies.
4. The disease has not yet been controlled, the economy has not shown signs of recovery, so investors are afraid of not participating in the Cryptocurrency market.

Topic: Is Covid-19 a cause for BTC price drops? - page 5. (Read 837 times)