Bitcoin price has nearly doubled since the cryptocurrency experienced a massive collapse in mid-March, falling to as low as $3,800.
Although the first-ever cryptocurrency is now trading at prices above $7,000, with the way the asset has been tightly correlated to the stock market and with how rough the week ahead is expected to be, Bitcoin price could suffer yet another catastrophic collapse.Continued Correlation With Stock Market Could Have Deadly Implications As Coronavirus Cases Peak
Bitcoin price has been closely tracking alongside the S&P 500 and other major stock market indices, which thus far hasn’t boded well for the leading cryptocurrency by market cap.
The selloff that first started in the stock market spilled over into cryptocurrencies, precious metals, and other assets, just as coronavirus fears began to spiral out of control.Related Reading | How the Dow’s Fractal of Doom Could Take Bitcoin to $1,000
The historic collapse took Bitcoin price down to $3,800 after trading at over $10,000 just a month prior.
In just a couple weeks following the massive drop, Bitcoin price is already trading well above $7,000. The hope of a recovery ahead of the upcoming halving this May has sentiment bullish once again, despite the current economic climate.But the recent rally in Bitcoin price may come to an end this week, as the widespread expectation across the United States is that over the next two weeks, cases – particularly deaths – related to the spread of COVID-19 outbreak are expected to peak.
Futures trading around mid range. If SPX breaks this mini range to the upside I expect some of those higher fibs to be hit. Would look at the 50% 1st. I think the correlation between SPX and BTC will be back on this week. I just see a rough week ahead with the NY situation. — CryptoISO (@crypto_iso)
Bitcoin Price in Danger As Rough Week Ahead Expected
With Bitcoin price following the stock market, another drop could occur in the coming week.
According to data and the coronavirus “curve,” cases are expected to peak in the US over the next two weeks, especially in New York which has been in the country. The morbid images of dead bodies being stored in makeshift morgues could cause another wave of panic-selling across Wall Street, located dead smack in the middle of coronavirus ground zero. The media is having a field day with the frenzy and fear, further exacerbating the panic in the general public. And even the President Donald Trump himself has warned the public to the country has ever witnessed.Related Reading | A Chilling 40% Stocks Drop Warning May Rattle Crypto Market
With things looking so bleak and potentially triggering another selloff in the stock market, Bitcoin price could also take a beating, as investors dump the high-risk asset in a mad dash to cash.
Only time will tell in terms of the impact the peak of the coronavirus curve will have on markets, but considering how deadly things are about to get, Bitcoin may not be the safest haven for storing wealth.Featured image from Shutterstock