The founder of the platform ivibitpay.com shared his opinion on this subject.
Do stock market fluctuations affect bitcoin?
Yes, for a long time, cryptocurrencies were considered an instrument independent of external economic and political circumstances. This was due to the insufficient distribution of the cryptocurrency market. But with the growing popularity of cryptocurrencies, the dependence of crypto assets on traditional markets – stock and currency – has become increasingly apparent.
In May 2019, amid trade wars between China and the United States because of President Donald Trump’s policies regarding Chinese exports, the S & P500 began to fall, and Bitcoin began to grow because investors used it as an alternative tool to hedge market risks due to for pressure on the global economy.
How will coronavirus affect the cryptocurrency market?
Perhaps if the global economic crisis worsens, cryptocurrencies may become a “lifeline” that will allow it to “wait out the storm” until the situation in the global market stabilizes.