BTC Falls By 6% Due To Coronavirus And Chinese New Year

The Bitcoin news now show that the major cryptocurrency has visited lows at $8,324 and could extend them if the situation around it strengthens. As BTC falls by 6%, we can see that its market cap is down to $151 billion and this is all due to what is known as a coronavirus in China.

For those of you who don’t know, coronaviruses are common in species of animals and can evolve and infect humans and then spread between them. In China, the death toll has climbed as infections reached more people and the country even banned travel for 35 million (infected) people.

The fact that BTC falls by 6% is in direct correlation with the situation in China. It is needless to mention how big of an impact the Chinese economy ha son cryptocurrencies and as the coronavirus continues to spread, BTC/USD has lost over 6% in seven days due many factors, one of which is the sensitive “virus” factor.

Even fifteen more people died in the city of Wuhan (the Hubei provincial capital) which is seen as the epicenter of the outbreak. The new figures show that there is a 60% jump from the previous death toll of 26.

Compiled by the trader and analyst Alex Kruger, the figures circulating on Twitter show that in the run-up to the celebrations, Bitcoin returns can often turn out as negative. In 2019, these returns averaged around 0.2% in losses for the week prior, but Kruger seemed unperturbed by the results.

Meanwhile, many critics have protested against the theory that the price action of Bitcoin is linked and influenced by geopolitical or other world events. Nonetheless, many issues involving China tend to impact the market conspicuously and against of the backdrop of a blanket crypto trading ban which was imposed by Beijing in 2017. The country still accounts for the majority of the Bitcoin mining activity, which is one more reason why BTC falls by 6% this week due to the news in China.

While BTC slumps and is trading at $8,324 at press time, there are a couple of gainers in the altcoin news. The biggest one in the top 10 on the day is EOS which managed to add 2.22% to its price and climb to $3.55.