China’s stock markets went down by over 5% with steep losses due to the extended holiday called amid an outbreak of Coronavirus, however, despite the unexpected fall in the traditional stock market, cryptocurrencies headed upwards, especially Bitcoin.
When markets opened in Hong Kong, Bitcoin jumped to the highest value since October, i.e. $9,608. According to Bloomberg Crypto Index, a basket of cryptocurrencies reached the highest value since last September maintaining 30.9% gain by 10:20 a.m.
Affect Of Coronavirus On Chinese Stock Markets
With the Coronavirus death doubling over the weekend, Chinese stock markets are under pressure. The virus is currently contained in China only according to the statistics that revealed the affected people in the country. The virus has affected over 14,000 people with more than 305 people dead in China.
Countries from all over the world are blocking passengers from China as the pandemic scare seems to grow. The effect of the pandemic disease is seen on the economy across all assets, including gold and Bitcoin that are expected to grow.
Bitcoin Reaches 40% High Breaking Its December Downtrend
Chinese stocks went down by the most since 2015, after the equity bubble burst which resumed trading this Monday. As the market reopened since January 23 almost after ten days, the CSI 300 Index was already dropped by 9.1%.
The managing partner with Kenetic Capital (blockchain investment and advisory firm), Jehan Chu commented that the value of digital assets like bitcoin would continue to explode as the trust in global markets will keep on deteriorating.
The head of business development at Singapore-based crypto exchange Luno, Vijay Ayyar said that the spike in Bitcoin today indicates the success of the crypto market since December when it broke out of its long-term downtrend. Bitcoin is now 40% high as compared to its mid-December low. Ayyar added that they see a final wave gathering in Bitcoin post the break of the downtrend with the current bullish action. There is around $9,250 support.